How Airlines Make Less Than $6 Per Passenger
Jun 3, 2014, 11:05 am
#1
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Jun 3, 2014, 2:21 pm
#3
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This is slightly misleading. Its really a volume issue. Low percentage margins work if you have high volume. Just ask all those companies pumping out cheap plastic knick nacks from China.
And is $6 per person really that bad? Put it in perspective, a family doctor seeing a normal volume of patients makes about $12 dollars a patient.
And is $6 per person really that bad? Put it in perspective, a family doctor seeing a normal volume of patients makes about $12 dollars a patient.
Jun 3, 2014, 2:27 pm
#4
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Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
Jun 3, 2014, 2:53 pm
#5
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Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
Jun 3, 2014, 2:57 pm
#6
Join Date: Nov 2011
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Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
Jun 3, 2014, 3:04 pm
#7
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I couldn't help but notice that there was no actual example given with real numbers to break it down. I guess we just have to trust the spin machine?
In the time of large corporations with billions of dollars of income paying zero taxes; CEO salaries reaching the sky; untold (and unknown) subsidies of corporations and Multi-billion dollar professional sports teams being non-profit organizations, call me skeptical.
In the time of large corporations with billions of dollars of income paying zero taxes; CEO salaries reaching the sky; untold (and unknown) subsidies of corporations and Multi-billion dollar professional sports teams being non-profit organizations, call me skeptical.
Jun 3, 2014, 3:33 pm
#8
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Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
Jun 3, 2014, 5:13 pm
#9
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Cargo, my friend. Cargo.
Jun 3, 2014, 6:17 pm
#10
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And Grocery Stores Claim 1.3% Margin
Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.
Clearly figures lie and liars figure.
One possible interpretation of the weasel-words, it could be $5.42 average per passenger segment. So a non-stop round trip would be $10.84 and a round trip with a change of planes would be $21.68.
And as another writer already wrote, if they are loading all their cost onto the ticket sales, the freight is then 100% profit.
Jun 3, 2014, 7:06 pm
#11
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Jun 3, 2014, 8:29 pm
#13
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Jun 3, 2014, 10:07 pm
#14
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Jun 4, 2014, 2:42 am
#15
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Something is a bit fishy with those numbers. If the average profit per passenger is $5.42, and the profit margin is 2.4%, that would mean the average revenue per passenger is around $220. Even if that is before taxes, that seems like accounting voodoo. I can't imagine ANY route where the fare plus fees is as low as $220 these days, much less having all the routes average that.