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Author Topic: No Profit  (Read 2533 times)

mnkhaki

  • Former member
No Profit
« on: March 28, 2010, 02:21:26 PM »
Hello! I restarted my airline after bankruptcy.. strangely my load factor is mainly in the 50's ad 60's % with profit on average of  $3-4000 per flight. Yet, I am in the red every week. I reduced my prices 15% from the recommended fares - where could I be going wrong? Any idea on how to improve the numbers to make it green in color?

Aircraft I have are deHavilland Canada DHC-8-100 and Embraer ERJ

Offline Kazari

  • Members
  • Posts: 458
Re: No Profit
« Reply #1 on: March 28, 2010, 07:00:34 PM »
Your load factor will need to be higher to make money. The per-flight figure is deceptive, however, because it doesn't take everything into account.

You'll need to improve your CI to improve load factors. If you are on a competitive route, you will also need to improve RI.

Patience at this point, will be helpful, and spending on marketing if you have it. Also make sure those planes are NEVER idle if you can help it.

mnkhaki

  • Former member
Re: No Profit
« Reply #2 on: March 28, 2010, 07:10:40 PM »
Thanks! I made a profit in my most recent week. $101. Yay. Patience it is!

Offline fauzi

  • Members
  • Posts: 171
Re: No Profit
« Reply #3 on: April 13, 2010, 02:06:01 PM »
Well honestly, planes that have less than 100 seats are mainly supplementary aircrafts, meaning they shouldn't be your main workhorse. Try to get a plane that has at least 150 seats, but not more than 250 when you're starting initially. The B757 or A321 is ideal.

But in your case now, just have to be patient, and try to increase your CI. That way you can charge a small increase on your prices, maybe around 5%.

 

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