I was surfing in another FF forum's discussion boards and I came upon a very interesting question. What are the 10 most PROFITABLE airline routes in the world? There were a number of consensus routes such as LHR-JFK because of the sheer number or daily offerings, but I wonder if LHR-JFK is really one of the most PROFITABLE routes for an airline. I don't have any expertise in route revenue management, but perhaps high frequency routes such as LHR-JFK, LAX-SFO, the east coast shuttle operations etc. have the most frequencies not because it is a very profitable route but because there is passenger demand for it and airlines can't afford to not serve the route due to competitive reasons (ie if AA doesn't offer the flight, the passenger will just go across the terminals to DL etc.) I would think that routes where an an airline doesn't really have competition would be more profitable.

The discussion on the other forum didn't define what profitable meant, but perhaps profit as a percentage of revenue? Largest amount of overall net profit? I guess there is an issue of does an airline want 90% profit margins but on a very small revenue route, or lower profit margins on a very high # of seats route?

Thoughts?

Most profitable route: NYC-DCA. Given the mega-profitability of the US and DL shuttles, I'm almost positive that this route must be at or near the top of the list.

I was once told that Air Canada's most profitable was Toronto-Vancouver. Lotsa weekday business travel at $3000+ for Y.

Dorian



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My understanding and I don't remember where I heard this, but pretty sure it was a special on A&E, Discovery Channel or some such is that LAX-JFK is the most profitable route--this was mentioned in relation to AA, who has 20 non-stops a day; 10 in each direction.

I also remember reading a while ago that the Hawaiian inter-island routes are very profitable...



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DCA-LGA-BOS

The Delta Shuttle and US Airways Shuttle are believed to be the most profitable part of their companies. I say "believed" since they never publish the numbers separately from the regular airline. But there are always tons of people paying lots of money (even with corporate discount) for a short flight.

Also, regional routes (US Express, etc.) tend to be VERY expensive if booked individually, and not a part of a connecting itinerary. I bet this is because the operating airline gets a bigger cut than when the pax is connecting to the mother carrier, so they charge more.

I would think Canada-Asia and UK routes would be doing well especially YYZ-LHR.

I read from some airline magazine, that Houston-Dallas route is one of the most frequent routes, but don't know if they are profitable or not, but Southwest does almost make a living on HOU-DAL routes.

Al

I remember reading that for American, their MAN-ORD route is the most profitable.

I believe LAX-JFK has one of the highest % of paid F class on any route. Guess why? Remember good ole MGM Grand?

What about those trips on AA/CO to Central and South America? I've heard that they make
major bucks - just on the cargo revenue alone - that on these routes generate.

The routes to South America, particularly Brazil and Argentina/Uruguay must generate alot of revenue - look at how expensive they are - higher than Asia. Also, the flights to LHR from ORD must be quite profitable. I believe AA, UA, BA all have at least three flights a day and Virgin Air just got into the mix.

I've been on 20 minute flights on a 17 seat Beechcraft between a regional airport served by only one airline and a hub that added over $100 to the flight cost no matter where you go.. I imagine those flights are very profitable.

I would be very surprised if JFK-LHR is one of the most profitable routes. Ever since the Asian downturn there has been a whole heap of extra capacity on those routes which is just starting to be dissipated (both DL and UA have a few new Asian routes starting April 1, 2001) and there have been crazy sale porices on these routes, eg $228 roundtrip. The fact that the discounts are so low is probably an indication that they're having trouble filling the planes, and thus that the load factors (which govern profitability) are not great. Just a guess though, or course!!!

i would think that lhr-jfk would definitely be one of the most profitable, but not based on what happens in coach. biz and first class airfares are routinely higher out of the uk than most other european countries. the fact that us-uk open skies can't be done because of the fierce battle for slots at lhr also lead me to believe that this route is a gem for those that have it. i'm aa plat, and i usually don't try to upgrade it, as i feel the route is too short to give them 25k for, but i rarely see that biz cabin with any open seats, and there are always people up in first as well.

i also puy jfk-lax on the list, cause i can never get an upgrade as a plat as most of the seats are purchased in biz class by hollywood types.

[This message has been edited by lonman (edited 10-25-2000).]