JMJAirways
Topic Author
Posts: 208
Joined: Wed Apr 27, 2005 8:05 am

Airlines Operating Costs, Incomes, Profits

Thu Apr 28, 2005 6:54 am

Hey!

I am very intressted in the economical aspect of an airline (besides my passion Aviation)...

Anyone here with some information on differente airlines operating costs?
For an example what's the cost of a flight from Heatrow to JFK with a 777 or A330 or any other aircraft...


All kind of these type of informations would be appreciated !

Thanks

Best Regards
I am willing to pay extra for a A346 flight !
 
futureuapilot
Posts: 1329
Joined: Mon May 24, 2004 7:50 am

RE: Airlines Operating Costs, Incomes, Profits

Thu Apr 28, 2005 8:06 am

Just an interesting fact: Sense the beginning of the airline buisness, the industry in whole has never made a single dollar profit...

-Sam
The Pilot is the highest form of life on Earth!
 
JMJAirways
Topic Author
Posts: 208
Joined: Wed Apr 27, 2005 8:05 am

RE: Airlines Operating Costs, Incomes, Profits

Thu Apr 28, 2005 10:24 am

that is very intressting indeed !

Although some Airlines still manage to make some profit... (some times)

Best regards
I am willing to pay extra for a A346 flight !
 
B744F
Posts: 2927
Joined: Sat Jan 21, 2006 4:52 pm

RE: Airlines Operating Costs, Incomes, Profits

Sat May 14, 2005 10:35 am

Saying you've never made a profit is very deceiving. Just because a company doesn't turn a profit doesn't really mean anything. Most of the time, companies reinvest what profit they could have towards future projects, such as marketing campaigns, painting of aircraft, etc. Things that are not necessary.

My biggest complaint with the whole "show a profit" thing is these executives are paying themselves and the board members outrageous salaries for a usually lously job. Then they turn around, claim they don't make a profit, cash out their stock options and get their golden parachutes and leave multi-millionaires while the people who suffer are the general workers who are basically told to get a 401k invested heavily in the companies stock. What people don't understand is diversifying your stock options is the only way to not take a hit, but that's a whole different story.

Basically the bottom line is, of course a company won't show a profit, when you have outrageous stealing of the workers' money by executives.

[Edited 2005-05-14 03:37:17]
 
mandala499
Posts: 6458
Joined: Wed Aug 29, 2001 8:47 pm

RE: Airlines Operating Costs, Incomes, Profits

Sat May 14, 2005 5:27 pm

Do all this to a per flight hour cost...
Aircraft Cost
Crewing Costs
Maintenance Costs
Insurance Costs
Fuel Costs
Navigation/Landing/Parking Charges
Handling costs...
Overheads.

Now if your revenue per flight hour is less, you better start cutting costs or raise the fare...

There you go... In a nutshell  Smile

For say a 732 flight from Jakarta-Surabaya...
AMI Costs US1400/hr
Crew US100/hr
Fuel = 3 tons an hour * 55cents a liter.
Nav/Ldg/Pkg = US$86 per hour

The flight is about 1h15.. so it's 1.25 * (1400+100+86+1800) = 4233 USD.
At 120 seats = 35.28 USD per available seat. This doesn't include overheads....

Mandala499
When losing situational awareness, pray Cumulus Granitus isn't nearby !

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