FlyerTalk Forums - View Single Post - How much profit does a typical carrier make on each flight?
Old Aug 19, 2020 | 4:19 am
  #15  
lhrsfo
FlyerTalk Evangelist
30 Countries Visited
1M
All eyes on you!
15 Years on Site
 
Join Date: Jan 2009
Location: London & Sonoma CA
Programs: UA Plat, MM *G for life, AY Plat, BA Silver
Posts: 10,524
Yes the calculation is difficult, but I'm not sure that it's very different to that of any other capital intensive industry. The major difference between airlines and other capital intensive industries (eg motor manufacturers, power producers etc.) is that airlines sell a very wide number of products to a huge number of consumers at fairly low dollar amounts. A power producer sells to, at most, a handful of customers (the power suppliers in a competitive market), a car manufacturer sells far fewer units at much higher prices. But the understanding of the different fixed costs, the different variable costs and the different marginal costs should be similar.
lhrsfo is offline