3 ms·
That $10B is a high number, certainly, but it's historically high. It's worth keeping context in mind here: this profit is earned on 446B passenger miles. Every
by mseebach 9y ago
That $10B is a high number, certainly, but it's historically high. It's worth keeping context in mind here: this profit is earned on 446B passenger miles. Every time you fly a mile on AA, they profit a whopping 2.2 cents, and that's in historically good years. Even on a 7000 mile long-haul, that's just over $150 average per passenger. Devil's advocate says that smaller legroom is the reason they can turn a profit at all.
I think that qualifies as low margin.
- reaperducer 9y agoLow margin would be if they made $5. A $150 profit is pretty good since there are 200+ people in the plane. That's $30,000 a flight. And remember, we're talking profit here, not income. I can't think of a scenario where a business with millions of paying customers would sneer at merely making a profit of $150 off of each one.