Do RJs make money?

[BigPappa]

Back to basics! Too many financial analysts are trying to reinvent the wheel in the aviation industry. The fact remains that it’s still just a matter of simple arithmetic. Let’s compare a CRJ 200 in this example: The Total operating cost of this RJ is approx. $2400.00 per hour. You can figure that the average ticket costs approx. $350.00 per person (call it a round trip). At our company the average CRJ flight is approx. 1.3 hr. Load factor most of the time is 23 or better. In this case (3120/175=17.8) the load to required to break even is 18 pax. With this in mind you can say that we are making money most of time for our big Mother!

 

[WMUSIGPI]

Very true if that is the only leg of the trip for the 18 pax. That has to be recalculated when those people then hop a 757 to the other side of the country. Most people these days connect to somewhere. They fly at least 2 legs to get where they are going. Often paying less to do so than fly nonstop.

 

[Flyer1015]

You can figure that the average ticket costs approx. $350.00 per person (call it a round trip).

Who're you kidding?

Look at some of the fares offered by JBLU, SWA, Airtran, and even the majors. You're more likely to find New York - California one ways for $99 bucks. ($198+taxes for roundtrip).

All I'm saying is that an assumption that every passenger on an RJ paid $350 roundtrip sounds hard to believe... there will be those flying for free, those flying for discounted airfares, etc etc.

 

[Flyer1015]

Very true if that is the only leg of the trip for the 18 pax. That has to be recalculated when those people then hop a 757 to the other side of the country. Most people these days connect to somewhere. They fly at least 2 legs to get where they are going. Often paying less to do so than fly nonstop.

Good point.

Look at this guy's trip:

JFK - ATL (ASA CRJ)

ATL - TPA (Delta MD88)

One way... his grand total ?


Wait for it,


$ 69 BUCKS !

From the first picture / text : http://www.airlinemeals.net/meals/DeltaConnection.html

 

[Secret Squirrel]

I think you are being a little bit SIMPLE. I pulled up a round trip ticket on Delta being operated by Comair from IAH to CHS. The ticket was for $332.00 Round trip. This is almost 4 hours of flying each way. Both are on a 50 seat RJ. So lets do your BASIC math again. That is about 8 hours of flying round trip. That means $2400 an hour JUST FOR THE OPERATING COSTS OF THE AIRPLANE. How about advertising, gates, Management, Maintenance, etc. Or does big mother take care of all that? So $2400times 8 hours is $19,200. Divide this by $330 per ticket would require you to have 58 people on your 50 seat airplane to make a profit. Now this is a very simple answer of why you are so wrong. It is logic like yours that made people think FLYI would work.

SS

 

[jehtplane]

I think you are being a little bit SIMPLE. I pulled up a round trip ticket on Delta being operated by Comair from IAH to CHS. The ticket was for $332.00 Round trip. This is almost 4 hours of flying each way. Both are on a 50 seat RJ. So lets do your BASIC math again. That is about 8 hours of flying round trip. That means $2400 an hour JUST FOR THE OPERATING COSTS OF THE AIRPLANE. How about advertising, gates, Management, Maintenance, etc. Or does big mother take care of all that? So $2400times 8 hours is $19,200. Divide this by $330 per ticket would require you to have 58 people on your 50 seat airplane to make a profit. Now this is a very simple answer of why you are so wrong. It is logic like yours that made people think FLYI would work.

SS

Don't think it takes 4 hours to fly from IAH to CHS

 

[BigPappa]

Those numbers are based on averages. I've done my research. You do yours and come back with smart answers after you've done your research. I've kept up with fares and loads for several months! That $2400 includes everything.

 

[Secret Squirrel]

Don't think it takes 4 hours to fly from IAH to CHS

When you have to go through CVG it does. That is what the delta website showed for times

 

[h25b]

Don't forget someone has to make the lease payment on the aircraft...

 

[BigPappa]

Secret,
I was comapring pure RJ flights without major connections. Your $69 might have been on Ifly, I'can't find a ticket that cheap in Delta! That's why Ifly is bye bye. Again I am talking averages. You are comparing individual trips.