FlyerTalk Forums - View Single Post - Low Segment, Low mileage, High spend = Super Elite Please??
Old Nov 27, 2016, 8:30 am
  #57  
Adam Smith
Moderator, Air Canada; FlyerTalk Evangelist
 
Join Date: Feb 2015
Location: YYC
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Originally Posted by MaydayMayday
Dude you can't do a profitability analysis based on profit / segment

A segment could be 400 miles or 10000 miles. They're not the same

I would argue that I am actually MORE profitable to air canada than your average J flyer

Let's figure out how much I PAID air canada to fly me 1 mile

I;m currently at around 57000 AQD and having flown 52000 miles. Thats $1.09 I paid air canada to fly me 1 mile

Your J flyer did 117000 miles but only paid 22000 for the privilege. He paid AC only 19 cents to fly him 1 mile

I am over 5 times more profitable to AC than your J flyer....
Not sure you understand the cost structure and profitability of airlines or AC.

Shorter segments cost more. There are certain fixed costs in operating a flight - landing fees, check-in and gate agents, cost to market the flight, etc.

Aircraft are most fuel efficient at cruising altitude.

You like to pick on YYZ-HKG, but that's undoubtedly one of AC's lower-cost routes.

Something like YYZ-YUL or YYZ-LGA, on the other hand, is very expensive. Lots of segments for the same amount of mileage, lots of IRROPs, short time at cruise.

With your average segment being about 1000 AQM, probably less once COS bonuses are taken out, you're flying routes that are more costly for AC ro operate.

You're also paying Flex and some Latitude, rather than actually paying for J.

At $1.09 per mile, you're likely still a pretty profitable flyer, but to think you're 5x more profitable than the "average J flyer" is a joke.
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