Shanti From Senegal, joined Dec 1999, 61 posts, RR: 0 Posted (13 years 8 months 3 weeks 5 days 19 hours ago) and read 1772 times:
Do you know how many passengers, in percentage, an aircraft (747, 737, a340)has to bear to cover transport cost and make profit?
I wondered that when it happend to me to fly FLR-MUC (ARJ) and we were 2 (two) passengers....
CactusA319 From United States of America, joined Jan 2000, 2918 posts, RR: 25
Reply 1, posted (13 years 8 months 3 weeks 5 days 19 hours ago) and read 1754 times:
It depends on the aircraft and the airline. If the airline has a high cost structure, it may take tmore pax to make a profit on a flight. Also if the aircraft is an older type with a higher operating cost (fuel, maintenance, etc.) they also tend to need a higher load factor to earn a profit.
Cfalk From , joined Dec 1969, posts, RR:
Reply 2, posted (13 years 8 months 3 weeks 5 days 19 hours ago) and read 1744 times:
A lot goes into it - Fuel costs and labor costs in the country of operation being one, and the rate of depreciation allowable under that country's accounting laws being another (granted, it's a non-cash item, but it does hit your P&L).
From what I've seen any average of more than about 70% is considered OK. If you are on a really cheap, price cutter airline like Southwest or Easyjet, that rate may go up to 80 or 90%.
CAETravlr From United States of America, joined Oct 2000, 913 posts, RR: 1
Reply 8, posted (13 years 8 months 3 weeks 5 days 16 hours ago) and read 1699 times:
It also depends on how much they are charging for the tix. If it is a tightly competitive market, they may have to reduce fares to get any kind of load factor. Therefore, they need even more because they are not getting as much per passenger.
A woman drove me to drink and I didn't have the decency to thank her. - W.C. Fields
B747-437B From , joined Dec 1969, posts, RR:
Reply 9, posted (13 years 8 months 3 weeks 5 days 16 hours ago) and read 1690 times:
I don't think its feasible today to calculate each individual flight segment for its own break-even factor. The hub-and-spoke system as well as yield management has thrown traditional concepts of a linear relationship between price and costs out the window. The only accurate figure would probably be a systemwide (or at least a regional) average calculation.