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They are mostly fuel and wages of (frequently unionized) employees. For example, numbers for Southwest for the last quarter, of the total $4.2 bil expense:

Fuel: $1.5 bil

Salaries: $1.2 bil

Depreciation + Maintenance: $0.5 bil (basically all airplane related expenses)

So, maintenance expenses are only 12% of the total, while fuel is 35% and salaries 28%.

If the cost of fuel in orbit launches was indeed just 1% of the total cost, then compared to air travel those launches are very inefficient and there may be a huge room for improvement.




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