Labor and fuel are the cost drivers of airlines.
A cost driver is a variable that causes a change in costs when the cost driver changes. In other words, it is a variable that influences the expenditures of the organization.
A cost driver is the immediate cause of a company expenditure. A cost driver is any activity that causes the cost of anything else to increase. As an example, the volume of water at the workplace uses in a month influences the cost of the water bill. The cost drivers are water units, and the cost is the water bill.
Therefore, the answer is labor and fuel since when the prices of these are changes the cost also changes.
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