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Is that because of pricing or because of company structure/setup though? Ryanair is currently predicting 510M profit on 81M trips in Europe for 2014. Not sayin
by jib 12y ago
Is that because of pricing or because of company structure/setup though? Ryanair is currently predicting 510M profit on 81M trips in Europe for 2014.
Not saying they are a model company in any way (the main thing I disagree with is some of their employee treatment), but they are certainly proving that it is possible to operate a profitable airline with low prices and high quality.
- jacob019 12y agoonly $6.30 profit per trip and that's the best example of a profitable airline, crazy
- jib 12y agoThat is on about 3-4B revenue or so though, so its actually a pretty good profit margin.
- jacob019 12y agoThat would be only $49 in revenue per trip, seems low.
- Someone1234 12y agoWhen you put it in those terms it seems almost insane. How can any company operate on such low margins? I mean, yes, the "Walmart model" is the answer, but it seems like they could go under very easily if hit by something unexpected.
- epochwolf 12y ago> it seems like they could go under very easily if hit by something unexpected They do. http://en.wikipedia.org/wiki/Airline_bankruptcies_in_the_United_States http://en.wikipedia.org/wiki/Airline_bankruptcies_in_the_Uni...
- fennecfoxen 12y agoThere's an old joke about this: How do you make a million dollars in the airline business? Well, you start with a billion dollars...
- ssharp 12y agoI have no idea how airline accounting works, but if these numbers are correct, you'd have to assume quite a bit of money collected is not counted as revenue and is going to cover direct costs like taxes.
- deleted 12y ago[deleted]
- enraged_camel 12y agoCalling RyanAir "high quality" must be some kind of joke.