Enter the total cost of time and the total cost of fuel into the calculator to determine the airline cost index.

Airline Cost Index Formula

The following formula is used to calculate an airline cost index.

ACI = TCT / TCF

  • Where ACI is the airline cost index
  • TCT is the total cost of time ($/hr)
  • TCF is the total cost of fuel ($/lb)

To calculate the airline cost index, divide the total cost of time by the total cost of fuel.

What is an airline cost index?

Definition:

An airline cost index is defined as the ratio of time-related costs of operation of a plane to the total cost of fuel used in the same time.

How to calculate an airline cost index?

Example Problem:

The following example outlines how to calculate an airline cost index.

First, determine the total cost of time-related operations on the airline. In this example, the time related costs are calculated to be $1,000.00/hr.

Next, determine the total cost of fuel. In this case, the cost of fuel is measured to be $2.45/lb.

Finally, calculate the airline cost index using the formula above:

ACI = TCT / TCF

ACI = 1000/2.45

ACI = 408.1