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Author Topic: All routes in profit; company losing  (Read 284 times)

DigitalJonathan

  • Former member
All routes in profit; company losing
« on: January 11, 2015, 10:24:53 AM »
Hi

All my routes are in profit but my company as a whole is losing money pretty badly. I can see that there are lots of costs that the route profitability number doesn't cover -- that's all good.

So, is there a critical mass of profitable flights that's needed to cover the back end costs? Despite demand for certain routes being in excess of my PAX, I'm never getting 100% LF. Costs too high? Any ideas welcome or I'll be cut my losses and declaring bankruptcy!

J

Online Sami

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Re: All routes in profit; company losing
« Reply #1 on: January 11, 2015, 10:42:21 AM »
Singe route or aircraft profit/loss figures include only the direct costs of operating that route. Companywide costs such as staff, marketing etc. are not included.

Without further details it's a bit tricky to say where's the problem. (But make sure at least you are not spending too much on marketing.)

 

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