Originally Posted by
cubfan99
Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
For years grocery stores have cited profit margins hovering around 1%, in this case 1.3%.
http://www.marketplace.org/topics/bu...ghly-desirable Yet grocery stores seem somehow to stay in business.
Clearly figures lie and liars figure.
One possible interpretation of the weasel-words, it could be $5.42 average
per passenger segment. So a non-stop round trip would be $10.84 and a round trip with a change of planes would be $21.68.
And as another writer already wrote, if they are loading all their cost onto the ticket sales, the freight is then 100% profit.