The conversation between human and AI assistant.
What are the fixed costs and variable costs of a major airline?
I'm wondering if you can tell me about the fixed costs and variable costs of a major airline.
Sure thing! Fixed costs are expenses that remain constant regardless of the number of passengers or flights. Examples include salaries of employees, lease on aircraft and airport facilities, and insurance premiums. On the other hand, variable costs fluctuate with changes in the number of passengers or flights. These include fuel costs, food and beverage expenses, and maintenance costs.