Norwegian revealed as Europe's best low-cost airline for 2018. It marks another milestone for the brand. Graphik Black Fontana. Aggregate views of airline costs have their limitations. A better approach looks in depth at cost drivers. Dec 17, 2015. However, 'like other airlines flying both international and regional services,' he noted, challenges to the operation continue to be the 'common industry drivers' of fuel costs, passenger load factors and aircraft utilisation. CAL he added, has started a programme of product improvement and '2016 will be a.

Drop in fuel prices benefit airlines, not passengers Thursday 4 December 2014 Cheaper Oil, higher airplane fares Oil prices have hit a five-year low of US$67.50 a barrel. This should have been a godsend for the global tourism industry because the cost of air travel should have declined. But that has not happened. Countries, such as several of those in the Caribbean, that have a heavy reliance on tourism, will be disappointed that their tourist arrivals will not increase because air fares have not decreased. However, airlines have opted not to pass on the benefits of the windfall in oil prices to customers. Instead, many that have been facing operational losses are anxious to turn to profitability, and so avoid bankruptcy that has troubled some. Airline experts say there are three major drivers of the industry economics: aircraft maintenance, ownership cost and fuel cost. The first two are fairly predictable costs over which management has some control, but fuel is a variable cost. When the price of oil was high and rising, many airlines were either losing money or barely surviving. Now, with lower fuel costs, all the airlines can make money by not passing on the savings to customers.