Profit Margins

Started by unsaid, May 11, 2010, 01:38:45 PM

unsaid

I am still a noob in this game(not in Wow though) and I am wondering what the general profit margin for a successful airline should be? To be exact, an airline with,
no debt, therefore no bank fees or loan payments,
good commonality, lets say two different types for a size of 20 planes,
normal marketing, I pay about 7% of my revenue to marketing,
all planes leased,
staff costs of europe or usa.

Generally, what should be the profit margin for a successful company? Will it be different if it is long ranged or regional?

My airline has 12 planes, with 8 orders, regional, large and very large planes, and I am making 18% profit.

JonesyUK

As far as I'm concerned, as long as you're making money you're succesful. Generally, larger airlines are high turnover, low profit (5-10%) and well run small airlines are low turnover, high profit (20-40%)