Certified Logistics Technician (CLT) Practice Exam

Air carriers indeed incur heavy fixed and variable costs, making the statement true. Fixed costs include expenses that do not fluctuate with the level of flying, such as aircraft leases, salaries for ground staff, and investments in airport facilities. These costs must be covered regardless of how many flights are operated or how many passengers are transported.

Variable costs, on the other hand, are dependent on the level of activity and include expenses such as fuel, crew wages, and maintenance costs, which increase with more flights or longer distances. The nature of the airline industry means that both types of costs can be substantial and impact profitability. Understanding these cost structures is essential for anyone involved in logistics and transportation, as they deeply affect pricing, capacity planning, and overall financial strategy for air carriers.

The other options do not accurately capture the comprehensive cost structure of air carriers. While some carriers may have different cost profiles for international versus domestic or cargo flights, the overall assertion that air carriers incur heavy costs remains true across all types of operations.