Originally Posted by
DYKWIA
As with any airline, they'll push the prices as far as they can. We're in an upturn at the moment, so people are spending more. EK (and other airlines) will take advantage.
Once the downturn starts again, expect more sale fares and bonus miles.
Just look at BA. They are cutting down back on almost everything, but they are still making a good profit. There was a post yesterday about the amount of booze that's carried (they are now round-tripping, so it frequently runs out).
m3red could probably drink it all himself
Yes, but I thought the BA business model was milk all they can out of the transatlantic routes and sod the rest of the network
I mean, look at the margins on LHR-JFK 747s: fill up the plane with 20,000 US gallons of fuel, that's 35k USD so around 23k GBP. Fuel is about 35% of costs at BA, but that was when fuel was double the price now. So total other costs would be about 130k USD, so 165k USD, so about 100k GBP to run the sector.
High capacity J config on a 747 is 14/70/30/185 - and looking at even the cheap fares, that's 14*1500+70*1000+30*400+185*200 = 140k GBP. 80% load, so: 112k GBP. 12% margins - not bad at all, and that's based on the cheap cheap fares, not the expensive flex ones that I know people buy on BA...so...guess the rest of the network is losing money!