Source: ATA Annual Report 2005.
Operating Revenues of the Airline Industry
The major sources of revenues from the airline industry are still from passengers, which accounted for 65% of operating revenues in 2004, down from 72% in 2000. The fare system in the airline industry has become very complex with the usage of yield management systems trying to optimize income by constantly changing the fares. Thus on the same flight many passengers will have paid different fares depending on the circumstances in which they bought their tickets. Business and first class tickets come at a high price partially because of the amenities they provide (e.g. lounge, boarding priority, comfort and food) and also that they tend to be booked closer to the departure date.
Freight services, including mail, account for 11% of revenues, a share which is growing. This distribution of revenues by the type of passenger service is also revealing. 80% of all revenues are derived from domestic services, while international services account for the remaining 20%. Further, 8% of the passengers generate 40% of all trips on a yearly basis.