How is Cost per Enplanement (CPE) calculated?

Cost per Enplanement (CPE) is specifically calculated by dividing the total airline charges by the number of enplanements. This method provides a clear measurement of the average cost incurred by the airline for each passenger who boards the aircraft, helping airports and airlines assess financial performance and efficiency in the use of resources.

The focus on enplanements, which refer to boarded passengers, is crucial because it directly relates cost measurement to the actual operation of carrying passengers. This metric is vital for financial planning, budgeting, and operational decision-making within the airline industry.

In contrast, other options present different calculations that do not accurately reflect the concept of CPE. For example, total airline charges divided by total flights would measure costs on a per-flight basis rather than per passenger. Similarly, averaging operating costs per flight does not focus on the passenger aspect that CPE emphasizes. Lastly, summing airline revenues and dividing by market demand strays from cost analysis to a revenue perspective, which does not align with the intent of measuring costs on a per-passenger basis.