Originally Posted by
Dave_C
In normal times, from what I understand, it’s marginally profitable. The devil as always is where you allocate the revenue from a ticket that has a longhaul and short haul sector. I have no insight as to how BA do that.
There’s a million ways I could think of doing it, but I’m not sure I fully understand the intricacies of how airlines manage P&Ls by division and route.
Ticket revenue is pro-rated by sector, which will make shorthaul look less profitable in itself. But there’s also a concept of ‘network contribution’, through which the benefit to the longhaul network is assessed. Fairly standard among network carriers, obviously with nuances.