Re:How to Beat High Airfares (2011)
by jib on Monday September 15, 2014 @01:05PM
(#8319985)
That is on about 3-4B revenue or so though, so its actually a pretty good profit margin.
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That would be only $49 in revenue per trip, seems low.
I have no idea how airline accounting works, but if these numbers are correct, you'd have to assume quite a bit of money collected is not counted as revenue and is going to cover direct costs like taxes.
Re:How to Beat High Airfares (2011)
by Someone1234 on Monday September 15, 2014 @01:40PM
(#8320177)
When you put it in those terms it seems almost insane. How can any company operate on such low margins? I mean, yes, the "Walmart model" is the answer, but it seems like they could go under very easily if hit by something unexpected.
> it seems like they could go under very easily if hit by something unexpected
They do. http://en.wikipedia.org/wiki/Airline_bankruptcies_in_the_Uni...
Re:How to Beat High Airfares (2011)
by fennecfoxen on Monday September 15, 2014 @02:01PM
(#8320324)
There's an old joke about this: How do you make a million dollars in the airline business? Well, you start with a billion dollars...