Le airfares has taken center stage at the French National Assembly. During the examination of the Finance Bill on Friday, November 8, members of parliament approved the government’s proposal to increase taxes on air transport. According to Budget general rapporteur Charles de Courson, the measure will raise the tax rate on airline tickets. For an economy-class flight to a European destination, for example, the tariff will increase the price of the ticket by 6.90 euros. But this tax is just one of the many elements that make up the price of a plane ticket.

A fixed portion

The price of a flight includes a fixed component. These are taxes such as the Taxe sur le transport aérien de passagers (TTAP), the Taxe sur les nuisances sonores aériennes (TNSA) or VAT. According to an Air France-KLM document detailing its fares, they represent 9% of the price of a Paris-New York ticket and 24% of a Paris-Nice ticket.

This fixed portion also includes airport and navigation charges. The latter remunerate “the services and facilities offered by airport operators, including passenger facilities, air traffic control services and the infrastructure required for aircraft operations”.states AirFrance-KLM in its document. In total, the fixed portion of taxes and fees represents 40% of the price of a ticket from Paris to Nice, and 17% on a flight from Paris to New York.

Fuel costs

Fuel accounts for another significant proportion of the price of an airline ticket. According to Air France-KLM figures, fuel accounts for 21% of the price of a Paris-Nice flight and 29% of the price of a Paris-New York flight. This percentage can vary according to the price of kerosene, which automatically leads to fare fluctuations. This percentage also varies according to the margin and services offered by the airline. For low-cost airlines, fuel is a more important cost factor than for traditional airlines.

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Profits and sales at a loss

The price of an airline ticket also includes the margins charged by the airlines. This can vary according to the services offered. In the case of low-cost airlines, the ticket price is inflated according to the options chosen. Ryanair and EasyJet, for example, offer the option of checking in an extra bag. This profit share also varies according to an algorithm specific to each airline. For example, prices may fluctuate according to aircraft load factors or the calendar.

In some cases, airlines offer tickets at rock-bottom prices that don’t even cover taxes and fees. How can this be done? By selling at a loss and hoping to make up for it on the return ticket, or on other passengers who pay through the nose for a ticket bought at the last minute. In August 2023, the former French Minister of Transport, Clément Beaune, called for this practice to be abolished. “the introduction of a minimum air fare”. in Europe in order to “combat social and environmental dumping”. A project rejected out of hand by the airlines. In 2020, Ryanair’s CEO Edward Wilson criticized a similar project in Austria, which he judged to be “a major step in the right direction”. “worthy of North Korea”..