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That is on about 3-4B revenue or so though, so its actually a pretty good profit margin.
by jib 12y ago
That 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.