ATA Q3 Composite Cost Index Up

The Air Transport Association of America, the industry trade organization representing the US airlines, has reported that its composite cost index rose to 191.2 in the third quarter of 2007, up 0.2% from the third quarter of 2006.

The Air Transport Association of America (ATA) has reported that the average price paid for fuel increased 1.6% to $2.11 per gallon. The average cost of employing a full-time equivalent worker rose $709 to $76,423. Airlines experienced a 15.3% jump in maintenance material costs, offset in part by a 16.4% decline in aircraft insurance costs and a 17.4% decline for other insurance costs. Overall unit operating cost per available seat mile was unchanged at 12.49 cents. The average break-even load factor dropped 1.3 points to 76.6%.

John Heimlich, chief economist of ATA, said: “The slowing economy and sky-high fuel prices are putting tremendous pressure on US airlines to reduce non-fuel costs. Fortunately, in the third quarter, a record load factor of 83% helped US airlines offset the 91% increase in costs they have seen since 2000.”