At what LF do you take seat prices over 100%? I've always raised them to 110% if LF = 99%+. Am I missing some valuable income here? Should I be doing it at 95% LF?
Aim for about 85% LF, not higher. The best profitability is around those numbers...
You are not looking for high LF but for high $$ profits - most people do not realize this.
Quote from: Sami on March 07, 2017, 05:26:12 PM
Aim for about 85% LF, not higher. The best profitability is around those numbers...
You are not looking for high LF but for high $$ profits - most people do not realize this.
Thanks Sami
85% is a nice goal when you fly standard seats, but my own experience with economic seats is that your LF does fall drastically when the price reaches a certain limit. And it's usually between 96% and 98% of LF. I made a lot of testing with my CRJ100s, and each good line(enough demand, not much opposition) was doing the same 20k$ per day. Impossible to get more for those 52 economic seats.
Yeah I've been experimenting with my Dornier 328s and find that with LFs at 98% or so, any increase in ticket price drops the LF and thus reduces profits as I have fewer seats than larger aircraft to cover the reduced sales. The rule of 85-90% seems to work well with 737 sized aircraft but when you're talking <50 seats I've already got the massively over the top staff costs for an airline my size to cover, need every seat I can fill.