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Author Topic: Route Profits  (Read 1334 times)

Offline MRFREAK

  • Members
  • Posts: 268
Route Profits
« on: June 04, 2009, 09:14:21 PM »
Hey there.

I got these 3 routes from Copenhagen to destinations such as London-Luton, Birmingham and Düsseldorf. (All operated with Fokker F.27.)

Where i get profits arround 2-3000 dollars. Is it Okay or is it little. I haven't found out what is much and what's little.

Can anyone help me out?

Thanks

Mr.Freak

Echoco

  • Former member
Re: Route Profits
« Reply #1 on: June 05, 2009, 01:02:44 AM »
hi its been awhile since i posted on here and been even longer since I used Fokker 27. I think its an ok profit if its per flight, per plane though you'd want something around $7k per F.27

Offline swiftus27

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  • Posts: 4395
Re: Route Profits
« Reply #2 on: June 05, 2009, 09:25:08 AM »
Fuel prices are REALLY high right now.  Any profitable flight is good aobut now.

Offline powi

  • Members
  • Posts: 435
Re: Route Profits
« Reply #3 on: June 05, 2009, 01:33:52 PM »
My best routes are under 5k per leg. 2-3k is good for a "secondary route" leg or a very short one. Maybe just not enough to justify a new plane, but good enough to fill up a schedule. I fly red eyes with under 1k profits per leg and I've calculated that even those bring in some money, if the plane is already profitable (overhead included) with other route.

I operate 30 HS 748s

Offline MRFREAK

  • Members
  • Posts: 268
Re: Route Profits
« Reply #4 on: June 05, 2009, 02:47:17 PM »
Well. I sort some things out.

Got 3 planes and 6 routes, all of them produce a profit between 2400-6000 dollars. :laugh:

Offline powi

  • Members
  • Posts: 435
Re: Route Profits
« Reply #5 on: June 06, 2009, 02:30:27 PM »
Doesn't sound very profitable. You only have 2 routes per plane and those routes are not very profitable.

My worst plane flies with only two routes (4 legs) both producing over $3k per leg - that is over $6k per route (better than your best routes) totaling some $55k profit per week per plane.

My average plane flies with something like 8 legs a day with income from the best 4 legs over $3k / per leg and  around $2k per leg for the rest. This totals to around $120k/plane/week.

Hope you can still make some profit.

DenisG

  • Former member
Re: Route Profits
« Reply #6 on: June 07, 2009, 01:10:33 PM »
Well, with a F27 you have around 50 seats and a range of 870nm. Provided you have a nice route with demand around 130 and you fly one leg that should give you 5,000 USD revenue (at 100 USD per ticket and load factor 100%) and deduction of around 1,000 USD making the leg deliver 4,000 USD financial contributing after direct costing. Note this is before the general airline costs. Although the weekly plane calculation/estimate (based on previous day) derives the leasing costs, those costs are yet not cash effective, not showing up in the income statement during the first 3 months (upfront lease costs you already paid). An easy calculation would be to take the weekls result of the income statement (in a normal week, without extra income or cost) and deduct 3 times a weekly lease rate of for instance 25.000 USD, reducing the 140,000 USD to 65,000 USD profit per week. Then you can divide this by your 3 planes and that will give you and average profit per plane of 21.666 USD per week, which is cash effective. Making that around 3,100 per day per plane when flying 7 days. Further, dividing this by e.g. 4 legs will give you a cash effective profit of 775 USD per leg. When growing the airline, keep in mind how many planes are not yet paying lease costs, to keep the calculation effective.

The calculation tools in the simulation can be a little deceiving sometimes, so you must sometimes grab the good old pencil and a sheet of paper. During the first months it is therefore extraordinaily important to find good routes, without competition and reach a good load factor. Especially because the ovehead at the beginning seems to burry all your attempts. I started with one DHC-7 and had to feed 75 families with it! Imagine the responsibility of the management...  ;D

Denis

 

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