Since 1 October 2025 the Air Operations Regulation defines the term, and ANO 2016 Schedule 1 uses the same wording:
‘direct costs’ means the costs only directly incurred for a flight and include only:
(a) fuel;
(b) oil;
(c) airfield charges; and
(d) aircraft rental fees at current market rate
Because the list says "only", anything not on it, such as insurance, maintenance or club membership fees, cannot be shared. Those are annual costs, and NCO.GEN.102(b) says all costs other than direct costs "must be paid by the pilot with no contribution from the passengers".
Each passenger's contribution is capped by NCO.GEN.102(c) at "the total direct costs divided equally by the number of persons carried (including the pilot)". CAP 1590 (guidance), para 27 adds that pilots "may however choose to pay more than the proportional costs."
For example, if fuel, oil and landing fees for a flight come to £300 and you carry two passengers, there are three people on board, so each passenger can pay at most £100 and you pay at least £100. In a rented aircraft the hire charge counts too, but only at the market rate. The cost sharing calculator does the sums for you.
Source: UK Reg (EU) 965/2012, Article 2(12); ANO 2016, Schedule 1
Read more in our guides
- What counts as a direct cost on a cost-sharing flight? The four costs UK passengers can share (fuel, oil, airfield charges, market-rate rental), what's excluded, and the grey areas pilots should treat cautiously.
- Who pays what? Worked cost-sharing examples Worked examples of how the direct costs of a UK cost-shared flight split between the pilot and passengers, including odd totals and the pilot paying more.
- Cost sharing in a group-owned aircraft How UK cost sharing works in a jointly owned aircraft: the group hourly rate as a direct cost, the market-rate cap, annual costs you keep, and what to record.
Related terms
Back to the glossary. Definitions summarise the legislation and CAA guidance and are not legal advice.