Air Transport Association of America (ATA) said transport-related expenses – payments by mainline carriers to their regional partners to transport passengers and cargo on their behalf – rose 13.7 percent, when it reported its quarterly Airline Cost Index through the second quarter. Fuel rose 25.4 percent and labor jumped 23.6 percent. The ACI composite cost index rose to 185.7, up 5.6 percent from the second quarter of 2006, compared to a 2.4 percent increase in the Consumer Price Index (CPI). This is the 18 consecutive quarter passenger airline costs have increased. Other year-over-year highlights include:
• The average price paid for fuel increased 2.2 percent to $2.02 per gallon
• The average cost of employing a full-time equivalent worker fell $1,479 to $73,292
• Overall unit operating cost per available seat mile fell 1.1 percent to 12.46 cents
• The average break-even load factor (BELF) dropped 0.3 points to 76.4 percent
• Airlines experienced a 21.1 percent jump in maintenance material costs, offset in part by a 28.7 percent decline in aircraft insurance costs and a 16.5 percent decline for other insurance costs

“Soaring fuel prices, among other pressures, leave little room for error in maintaining today’s modest profit margins,” said ATA Chief Economist John Heimlich. “With the cost of running an airline up 86 percent since 2000, the industry remains laser-focused on improving efficiency and finding additional sources of revenue.”