Neutral unit of construction (airlines)

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neutral unit of construction
Symbol NUC

The neutral unit of construction or neutral unit of currency (code: NUC) is a private currency used by the airline industry,[1] to record fare calculation information.[2] A set of exchange rates is issued by the International Air Transport Association (IATA) every month.[3] The ticket component prices are converted from the original currency (of the country of commencement of travel) and recorded on the airline ticket.[4]

The NUC system came into being on 1 July 1989, having superseded the older "Fare Construction Unit" (FCU) system.[4] As of 2008, the NUC is pegged approximately to the US dollar ($1 ≈ 1 NUC).[5]

A similar unit, formerly used by the European railway industry is the UIC Franc (XFU).


  1. ^ Passenger Services Conference Resolutions Manual. International Air Transportation Association. June 2007. ISBN 978-92-9229-010-8. 
  2. ^ "eTACS Airline Cargo System". Flight Data Management. Retrieved 2008-11-28. The airline can define as many currencies as required. The conversion rates can be based on the IATA NUC or standard bank rates. 
  3. ^ "Section I – General Rules". Alaska Airlines. Retrieved 2008-11-28. IATA Rate of Exchange means the rate of exchange notified by IATA monthly to convert local currency fares to a Neutral Unit of Construction (NUC) and to convert total NUC amounts to the currency of the country of commencement of transportation. [...] Neutral Unit of Construction (NUC) means the unit value equivalent of local currency fares, add-ons and related charges derived by converting same using the IATA rate of exchange. [...] Rate of Exchange (ROE) is the rate based on the IATA Clearing House Rate which will be revised at least four times yearly and is to be used for conversion of local currency fares to NUC's [sic] and vise [sic] versa. 
  4. ^ a b Medlik, S. (2003). Dictionary of Travel, Tourism and Hospitality. Butterworth-Heinemann. p. 121. ISBN 0-7506-5650-6. Neutral Unit of Construction (NUC) The basis of air fare calculations established by the International Air Transport Association (IATA), which replaced the Fare Construction Unit (FCU) on 1 July 1989. In the new system individual amounts in local currencies are converted to NUC by the use of NUC conversation factors and the total NUC amount is converted back to the local currency of sale. The conversion factors are normally adjusted four times a year. 
  5. ^ "ITA Software Fare Construction". FlyerTalk. 2007-05-30. Retrieved 2008-11-28. NUC is the basic fare unit. It is the abbreviation for neutral unit of construction. It is a fictitious currency equivalent in value to the US dollar. An industry-wide term that carriers and governments use for fare construction purposes and air fare calculations.