A non-aviation friend of mine asked me how much profit would a fully loaded BA B-747 make on a journey from New York to London. I told him I didn’t have a clue and that it would depend on a number of things including (presumably) cargo.
Does anyone have any ideas?
By: Bmused55 - 3rd May 2011 at 09:19
I was once read somewhere that a BA 777 Captain on a flight to them US had stated that with a full business class and belly full of cargo, the flight was in profit already. The economy passengers were just the icing on top.
That was for the 777-200ER though.
By: Deano - 1st May 2011 at 22:01
This is the point I was trying to make, fuel hedging etc will guarantee a constant regarding the costs. Most, if not all things I listed should be a constant in one way or another, it just depends on whether the airframe and/or engines are leased etc. The only variable cost will be the price of the ticket generally speaking.
By: nJayM - 1st May 2011 at 21:05
You may upset Andy – he’s a competent authority
He asked about BA but as Deano sayd there are so many variables. I had thought maybe an accountant type might frequent the forums but then the accountant types I have met are not particularly interested in aviation:D
Thanks for the replies.
You may upset Andy – he’s a competent authority in his profession.
Mr Totty has brought up a very valid point. Airlines that protect themselves against wildly fluctuating fuel costs with strategic ‘hedging’ can do better than those who don’t.
If the aircraft is owned and fully paid for then apart from routine maintenance and operational overheads, profits can be improved, but as Deano has pointed out it usually depends if ticket prices weren’t heavily discounted.
By: Old Git - 1st May 2011 at 20:58
He asked about BA but as Deano sayd there are so many variables. I had thought maybe an accountant type might frequent the forums but then the accountant types I have met are not particularly interested in aviation:D
Thanks for the replies.
By: Arabella-Cox - 1st May 2011 at 19:37
I suppose much would also depend on how good an airline is at hedging against fuel price fluctuations.
By: Arabella-Cox - 1st May 2011 at 12:26
It would be very variable as Deano says. Who owns the aircraft would be the first question.
Nevertheless the old joke remains true, if you want to make a small fortune in aviation, you have to start off with a large one.
By: Deano - 1st May 2011 at 11:06
The amount of profit made will all depend how much the passengers paid for their ticket. Most other things will be a constant, like:
Crew costs
Fuel
Airways Charges
Landing Fees
Insurance
Leasing
Airframe
Engine Time
Catering
Airport Charges (push backs etc)
etc etc etc.
Because prices of tickets are fluid there would be no real way of gleaning this information until all tickets are sold and you actually have access to that information.
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May 1, 2011 at 9:03 am