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Old Jul 29, 2010 | 7:53 am
  #40  
ChrisA330
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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.
One key item you're missing is that while the base fare is whatever you're stating...there is also the fuel surcharge of $250.
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