Minimum Profit Required to cover the Overheads

[Pilot Oatmeal]

What is the minimum an aircraft should make to be able to cover the over head costs it needs to fly the route?... i know this question has a number of variables I am just looking for a rough figure.

Thanks,
J. oates

[Curse]

As you said already this depends extremely on type of aircraft, airline size, era your game world is etc. etc.

To give you a very rough number, 50% LF economy only with minimum 13 flights a week if you play in the 80s with some standard short/middle-haul aircraft like B737-400.

But, again, this is a question that isn't really answerable with no more variables given.

[Pilot Oatmeal]

To give you a few more variables to play with then, ERA: Modern Times Aircraft Types: Embraer 195s, ATR 42/72, Boeing 737-900ER.. Routes being anything from 150 NM - 1500 NM

looking for economy class minimum profit required

Thank you curse for your number when you say 13 flights a week do you mean per airplane?

J . Oates

[diskoerekto]

I am by no means an experienced player but both the range and the planes still vary wildly. For example, when fuel prices are high, a certain plane seems to be the most profitable one for ranges smaller than 400 nm. The same plane loses money like there's no tomorrow when the range is more than 650 nm.
But as a rule of thumb, if you are not using some exotic plane and manage to keep it flying (no waiting hours on the ground) and keep LF over 50-60%, you will be making good money. Regarding this, the planes you are talking about are not exotic (I have never flown Embraers but others sound reasonable enough). Just keep them flying with LF bigger than 50% and you will be quite ok.
Last point, my experience shows no matter what you do, shorter routes bring hell more lot of money. Go for routes smaller than 300 nm (smaller than 200 is even better if you can find such route with enough demand) and fly them 4-5 times a day. For a 70 pax plane that is 350 pax per day. For a 200 pax plane that is 1000 pax per day. If you can find such routes, it means you found a gold mine and you cannot lose.

[slither360]

Last point, my experience shows no matter what you do, shorter routes bring hell more lot of money. Go for routes smaller than 300 nm (smaller than 200 is even better if you can find such route with enough demand) and fly them 4-5 times a day. For a 70 pax plane that is 350 pax per day. For a 200 pax plane that is 1000 pax per day. If you can find such routes, it means you found a gold mine and you cannot lose.

This is true with a catch.

On ultrashort routes, your competitors will dump capacity on these cities when no other longer flight will fit in their schedule. That makes these routes very competitive and results in low LFs for these routes, reducing proft.

[Pilot Oatmeal]

If what everyone says is true (about 50% LF to make cover the Overheads) how am I not maintaining a weekly profit... everyone one of my a/c is 70% or above (most are above its the one that is 70%)..  can someone have a look at my airline and give me a bit of advice...

its Euro Jet based at Liverpool Airport in Modern Times 4

[slither360]

Your main problem? You are using E-jets.

This is an issue for a couple reasons: it barely has enough seats to cover overheads, and it is a gas guzzler.

Also, your overheads increase exponentially when you open a second base, so I suggest that you stick with 1 base.

[Pilot Oatmeal]

What should my next step be then?  the demand at liverpool was too low so had to start a new base.  I barely make 100,000 K a week and sometime I'm losing up to 300,000K  a week.  I chose the Embraers because there are a few routes around a 100 passenger demand that had some distanceso i thought they'd be perfect for the job.

J. oates

[ArcherII]

The problem with Embraers, as with any other regional airplane, is that it is no good for long and not-so-demanded routes. They work best with 3 or 4 flight per day and to the same destination, if that's possible.
Remember, the more destinations you create, the more people you'll need to employ. It's better to fill a route before attempting another one.

[Pilot Oatmeal]

again so my next step should be? should I bk and just wait til the next game world because I think it'd be impossible to start again as a beginner...or should i push on?

[slither360]

I suggest you BK and restart.

There are plenty of empty airports with good demand, and the used market is starting to open up, so it'd would probably be your best bet.

[Pilot Oatmeal]

Yea bob i think your right, so can you recommend an airport?  I'm not even sure its a good idea so many slots have been taken up its impossible to find anywhere to fly to

[slither360]

Look at the US.

There are many good airports there.

[EYguy]

Depends on 1000 variables... The smaller is your a/c, the smaller is your company, the further away is your destination from a main apo, the lower the o/h costs will be, so... You should take a look at your demand, decide which a/c you're going to use, make some granny maths and see which average profit you could get from a flight...

[Sami]

If what everyone says is true (about 50% LF to make cover the Overheads) how am I not maintaining a weekly profit... everyone one of my a/c is 70% or above

Load Factor alone does not give any answers. You can have 100% LF but ticket prices at "$1", and thus not making any profits.

It is much more complicated than that.