Here’s what goes into a plane ticket price

Do you believe that airline tickets are expensive? Do you know which kind of expenses go into the price of a plane ticket?

Business Insider provides the answer using the example of a USD 300 round-trip from Peoria, IL to Raleigh, NC sold on Jan. 1, 2017.

Taxes and fees account for 21.1% of the total cost. That equates to USD 63.35 paid on top of the baseline price. Breaking that USD 63.35 down further, there's a standard 7.5% tax on the baseline ticket price.

Then, there's a USD 4.50 facility charge for each airport the passenger lands in. This flight had a layover in Chicago which means that USD 4.50 is charged four different times for the round-trip.

Next, there’s a "segment tax" for takeoff and landing. This USD 4.10 tax is paid four times round-trip: Twice out and twice back.

Last but not least, is the federal security surcharge or better known as the Sept. 11 Security Fee. Standing in those security lines costs the passenger USD 5.60 per flight.

Before taxes and fees, the baseline ticket price is USD 236.65. Most of that money goes toward fuel and airline salaries.

Taking into consideration that big planes such as Boeing 747 consume around 4 liters per second and around 15,000 liters of fuel per hour, and that the price of fuel is around USD 900 per ton, things become much clearer.

Although the USA is used as an example, the prices are formed in a similar way throughout the world.

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