The variable cost to operate a Boeing 737-700 is $5,350.53 per hour. This figure specifically accounts for direct operational expenses that fluctuate based on flight time, such as fuel and maintenance.
Breakdown of Variable Operating Costs for a Boeing 737-700
Operating an aircraft like the Boeing 737-700 involves several key variable expenses that directly correlate with flight hours. These costs are fundamental for airlines and operators in their financial planning and budgeting.
Here is a detailed breakdown of the hourly variable costs:
| Cost Component | Cost Per Hour |
|---|---|
| Airframe Maintenance | $519.55 |
| Engine / APU Maintenance | $804.98 |
| Fuel Cost | $3,857.00 |
| Total Variable Cost | $5,350.53 |
Understanding the Cost Components
The total variable operating cost is a summation of several critical elements:
- Airframe Maintenance: This expense covers the routine inspections, repairs, and scheduled upkeep necessary for the aircraft's primary structure and components. It ensures the airframe remains safe and compliant with operational standards.
- Engine / APU Maintenance: This category includes the costs associated with maintaining, repairing, and periodically overhauling the aircraft's main engines and its Auxiliary Power Unit (APU). The APU provides power on the ground for various systems.
- Fuel Cost: Representing the largest single variable expense, the fuel cost is calculated based on the aircraft's consumption rate and the prevailing fuel price. For the 737-700, this is based on consuming 665 gallons per hour at a rate of $5.80 per gallon.
These figures represent the variable costs, meaning they are incurred only when the aircraft is actively flying. They do not include fixed operating costs such as crew salaries, insurance, depreciation, hangar fees, or landing fees, which are typically accounted for separately.
