2025–2026 Update: CPE is influenced by capital cost allocation and debt service policy. Large changes in capital spending or debt structures can shift CPE by 15–30% based on historical capital programs (DWU CPE database, FY2019–2024).
CPE Overview
Cost per enplaned passenger (CPE) is used by 30 large-hub airports (FAA Form 127) for allocating airport operating costs and setting airline rates. CPE reported by large-hub airports has a median of $14.20 in FY2023 (FAA Form 127)." Potential actions for airport finance teams to consider include evaluating CPE calculation, drivers, and peer comparisons in rate-setting and airline negotiations.
1. Introduction
Cost per Enplaned Passenger (CPE) is the average airline payment per enplaned passenger at a given airport.
CPE provides only partial information about an airport's financial health and may wish to consider alongside other metrics such as breakeven CPE, percentage changes in airline payments, airline payments as a percentage of total revenues, and CPE as a percentage of average fare revenues. However, as it is applicable across airports, CPE remains a benchmark used across airports (FAA Form 127) for comparing airport cost levels.
CPE is calculated using the following formula:
CPE = Total Passenger Airline Payments / Total Enplaned Passengers
CPE is always expressed in nominal dollars (not inflation-adjusted) for the relevant fiscal year. as a CPE increase may reflect inflation, operational changes, capital programs, or a combination thereof.
CPE Applications
Of 30 large-hub airports, airlines have negotiated based on CPE benchmarks in rate agreements (DWU review of airline agreements, 2024). 30 large-hub airports report CPE in FAA Form 127 for rate-setting (FAA data), cost management metric, and negotiation reference point.
2. What Is Included in CPE
CPE comprises airline payments across three operational areas of an airport:
Airfield Area
Landing fees from passenger airlines
Fuel flowage fees (where applicable; airport-specific)
Apron Area
Aircraft parking fees
Hardstand fees
Jet bridge fees
Ground power and Pre-Conditioned Air (PCA) fees
Hydrant fueling charges (where paid to airport rather than third parties)
Terminal Area
Terminal space rent (gates, holdrooms, ticket counters)
Terminal user fees
FIS (Facilities and Infrastructure Services) fees
Customs and immigration fees
International terminal fees (where applicable)
Excluded from CPE
All-cargo carrier landing fees (reported separately)
General Aviation (GA) payments
Into-plane fueling paid to third-party fuel vendors
Ground handling charges paid to third-party contractors
Utility reimbursements and cost recovery charges (varies by airport definition)
Airport finance teams may evaluate individual airport definitions when assessing CPE, as scope and categorization vary across airports.
| Category | Included in CPE | Excluded from CPE |
| Landing Fees | Passenger airlines only | All-cargo, GA |
| Terminal Space | Gates, counters, holdrooms | Cargo facilities |
| Fueling | Airport-operated hydrant systems | Third-party into-plane |
| Ground Handling | If airport-operated | Third-party vendors |
| Parking/Hardstand | Aircraft apron fees | Vehicle parking |
TABLE: CPE Components by Airport Area