FlyerTalk Forums - View Single Post - How many flights does it take to pay down a plane?
Old Mar 6, 2015 | 7:34 am
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Brko
10 Years on Site
 
Join Date: Jan 2012
Posts: 36
How many flights does it take to pay down a plane?

Obviously numbers differ so we can only ballpark this, unless we have someone who can give exact examples. I was trying to think through the payback period on an airplane during a flight from LAX to Bangkok. $1,100 round-trip ticket. If I consider myself an average fare, x 350 seats = $385,000 in revenues.

I'm not sure how business and first class factors in, so I'll round up to $500,000 in fares.

I believe the cost of most high-capacity jetliners is over $200 million, is that correct? Seems like an insane amount to recover!

I think 50% of the revenues going to overhead is a fairly generous allowance, I would actually expect more than that. But let's say the airline retains $250,000. So now they're looking at 800 flights to pay off their plane assuming no interest costs. That's a hell of a lot of time spent in the red.

Maybe someone who understands numbers better can offer some more insight, thanks.
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