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Airlines make less than a dollar per traveler per flight correct? They expect little year-over-year growth, and likely see little more than the baseline return
by maxmcd 12y ago
Airlines make less than a dollar per traveler per flight correct? They expect little year-over-year growth, and likely see little more than the baseline return on their marketing spend.
If that's their worldview, I can't see how they would ever justify such a large comparative loss for a little PR bump.
- draugadrotten 12y ago> Airlines make less than a dollar per traveler per flight correct? No, that is wrong. Very wrong. United: $1.13 Billion Profit 2014 The so-called ancillary revenue alone — fees for everything from checking a bag to more legroom — amounts to more than $22 per passenger.
- mseebach 12y agoIt's hardly very wrong. United carried 139m passengers in 2013, that's just over $8 per passenger. If they do indeed make more than $22 per passenger on ancillary revenue, that means they loose $14 per passenger if you look at the fare in isolation.
- jklein11 12y agoProfit != Revenue
- tehwebguy 12y agoI'm under the impression that credit card referrals are one of their most important revenue streams as well
- refurb 12y agoAgreed. That $1.3B isn't just profit from flying passengers around.
- arcticbull 12y agoThat's after losing $500 Million in Q1 2014. You've cherry picked a very, very good year for airlines with low capacity, strong demand and low oil prices. It's a highly cyclic and usually difficult business to be in. However, I believe the commenter said airlines, not United in particular. IATA published a 2013 report indicating that in fact airlines worldwide in aggregate made $4 net per passenger per segment. http://www.iata.org/pressroom/pr/Pages/2013-06-03-02.aspx http://www.iata.org/pressroom/pr/Pages/2013-06-03-02.aspx