Originally Posted by
pitz
The airplanes themselves get 45-70 seat miles per gallon of JetA, and fuel is typically no more than 1/3rd the cost of running an airline. So on an 8000 mile segment @ 50 seat miles/gallon, and $2/gallon for JetA = $320 for fuel; $1000 revenue required (above and beyond taxes!) each way.
So one of those $1300 tickets, which, after GST/VAT, after NAVCAN and Customs, AIFs, etc., etc., go for roughly a 50% loss.
Better 50% loss than 100% loss of course. But I don't understand your math, all those taxes and stuff are only a few hundred dollars, so it looks to me like they're breaking even on a $1300 ticket -- which makes sense. If they break even on their cheapest tickets then they're making money on anything sold for more than that.
Plus of course they make money on baggage fees, freight carried on the same flight, other flights the plane gets to make between the less profitable routes, etc.
But I find the basic math harid to believe. There are 270 seats on an AC 777L. You're saying that for over a quarter million dollars you couldn't rent and fly a 777 for a day? That seems like an awful lot of money to for a one-day charter.