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Cargo and proft

Started by Mikri, September 06, 2023, 03:37:59 PM

Mikri

Hi sami
I read on Discord that you have ajusted the setup for cargo. Maybe you have twisted it a little to much?

It seems like you need to have an average loadfactor around 50% on a 757pf and still dont make more than between 150.000 and 400.000 % pr. week. They are leased to prices around 500.000 and 600.000 $ pr month wich should be cheap.

I dont know wether this was your intention or not, or maybe Im doing something wrong. If it was your intention are you then implementing this in all gameworlds?

Best regards
Mikri

groundbum2

are the 757PFs you're talking about doing short haul cargo or long haul? In prior games short haul made some money but not a lot, long haul seriously printed the cash. I found for example KLAX-KATL I could not make profitable whatever I did, and the reason was the airport loading/unloading charges. Hence why domestic cargo from a top tier airport wasn't a good earner. But since I imagine the load/unload fee's are similar for short and long haul then long haul can make good money.

I think Sami has only adjusted the revenue side, I've heard no mention of airport charges being altered.

Simon

Mikri

My fligths are long haul 7*757 pfs on a 7 day schedule and i Agree with you that it seems Its mostly the revenue He has ajusted, but it most also be the demand. If you look at tungstennedge his profits isnt High either and He has in birmingham grabbed most of the marketshare in both the London area and the Manchester area. And the total amount of cargo he is carrying is lower than normal if you look at his total amount of cargo. Normally with his position he should be above 120.000 tn. He has almost No cargo competition in his area. But of course his low profit could be caused by other things. But he is one of the cargomasters in this game.

Can you make a better profit?

I tried to raise prices with 5 % but that didnt really change things, except that my loadfactor dropped a little. And Im the only supplier on those routes. Im carefull with Price adjustments cause as you know i went into problems in LA because i was to aggressive with prices among other things.

groundbum2

I'm not watching numbers close enough to see what the price pre tonne was. I don't think demand has dropped, my airline cargo curve has been steady throughout, no drops. Until you have RI90 it's all conjecture, that's when you get to fly the full amount. How to make profit - I think longer distances and higher LFs. Before with 757PFs I'd make a profit at 20%, which was usually one leg at X% and the the return leg at Y%. But now I'd guess I need 40-60% to break even.

Simon

Mikri

then we have the same experience :)

LF on 40-60 % to break even is also a rather high ratio since the demand is typically asymetric. So you need to be close to fully loaded on one leg to make som kind of profit.....

Jake

#5
Quote from: Mikri on September 07, 2023, 06:04:30 AM
I tried to raise prices with 5 % but that didnt really change things, except that my loadfactor dropped a little. And Im the only supplier on those routes. Im carefull with Price adjustments cause as you know i went into problems in LA because i was to aggressive with prices among other things.
I don't know how the competition is in US and EU in terms of cargo lately, but i have been running a default 15% cargo pricing for years with no difficulty in my Asian games, LF across my airlines usually end up around 34-40% and breakeven is usually somewhere between 13-20% LF with VL's in the last few game worlds for me (not counting my DC-8 cargo test which somehow almost never made me any real money)

Edit: yes, this holds true for me still after the latest change.

Mikri


Jake

No, but these changes are applied to all GW's