Cost Heads and Their Impact The major cost heads of airline operations and their relative floating weightage are as follow: A. Fuel cost (ATF): 35–45 per cent B. Lease and rentals (finance cost): 15–20 per cent C. Maintenance (MRO): 7–12 per cent D. User charges (airport charges + passenger services): 10–15 per cent E. HR + administrative cost: 10–20 per cent F. Ticketing, sales and promotions: 5–10 per cent G. Other operating expenses (miscellaneous): 5–10 per cent

