Airtrev, not sure what you're asking...how much revenue can an airline generate per seat? How much is a revenue passenger mile?
It all depends on how much the seat costs to fly: Cost per Available Seat Mile, or CASM. The figure is usually expressed (here in the States) in cents; 8.5 cents per mile, for instance. Then, how much Revenue per Available Seat Mile the airline can generate for each, also expressed in cents.
A lot of different variables go in to the cost side of the equation, including aircraft ownership costs, operating cost such as landing / navigation fees, maintenance, employee costs and fuel (and much more)
And a lot goes in to the revenue side...how much can you expect to get from each passenger, and adjusting your fare levels accordingly.
In the end, hopefully you'll pull in more revenue than you'll pay out as expenses.
|Quoting Airtrev (Thread starter):|
Some say an increase of 4% of seats can more than double an airlines profit, depending on how close to their breakeven point they're operating
If you have 100 seats that you charge the same amount to sell each, and you're at your breakeven load factor when you sell all of them (you're generating as much revenue as you're spending to operate the flight), then adding 4 more seats (assuming it doesn't cost you any more to add / fly them, and you charge the same amount as for the others), will improve your revenue by 4%.
Does this answer your question?