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Can you share data source for 1B? This seems like it's 1-2 orders of magnitude off based on gut feel and I'd like to understand how I can be this far off.
by bberenberg 5y ago
Can you share data source for 1B? This seems like it's 1-2 orders of magnitude off based on gut feel and I'd like to understand how I can be this far off.
- mastercheif 5y agohttps://www.bloomberg.com/news/articles/2021-11-07/u-s-flights-reopen-handing-british-airways-1-billion-lifeline https://www.bloomberg.com/news/articles/2021-11-07/u-s-fligh...
- temp_praneshp 5y agoTo answer GP, revenue, not profit. "That’s the revenue that British Airways generated each year linking its London Heathrow hub and New York John F. Kennedy International Airport, where a healthy mix of tourist and business customers made it the most lucrative route on the planet"
- maskedinvader 5y agoThe Bloomberg article mentions $1 Billion in revenue annually though not profit.
- version_five 5y agoJust off the top of my head, one plane on a transatlantic route could be $250k+ in revenue right? So 12 flights a day would be $1Bn? A major route could have that kind of frequency. A billions dollars doesn't seem absurd.
- loeg 5y agoGGP said profit, not revenue. GP is likely correct that profit would be an order of magnitude smaller.
- version_five 5y agoYeah I saw that after I posted (I misread it as revenue because that is what makes sense), I assume that's (revenue is) what the GP meant, and am realizing now that maybe the 1-2 orders magnitude comment was about the disparity between revenue and profit. The airline business is notoriously unprofitable, so yeah, the amount of revenue required to make a billion dollars profit would be something absurd, possibly more than the entire industry on many years
- deleted 5y ago[deleted]
- Nbox9 5y ago$1B sounds like a lot, but New York to London is probably the single most profitable plane route.
- bobthepanda 5y agoI misspoke and meant revenue, but alas I can’t edit the post anymore.