Scribd
Upload
16 views4 pages

Route Profit Analysis

The document presents a route profitability analysis for a new flight from MSY to DEN, estimating a total of 102,000 local passengers with a 70% market share for one daily flight. It includes detailed calculations of expected revenues from passengers and cargo, as well as operating costs associated with the flight. Key inputs include aircraft type, flight frequency, and various cost metrics, leading to an assessment of operating profit and margin.

Uploaded by

Minh Minh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
16 views4 pages

Route Profit Analysis

The document presents a route profitability analysis for a new flight from MSY to DEN, estimating a total of 102,000 local passengers with a 70% market share for one daily flight. It includes detailed calculations of expected revenues from passengers and cargo, as well as operating costs associated with the flight. Key inputs include aircraft type, flight frequency, and various cost metrics, leading to an assessment of operating profit and margin.

Uploaded by

Minh Minh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Annual Prorated Total

Demand Average One- Revenue


way revenue
ROUTE PROFITABILIUTY ANALYSIS

DEMAND AND AIRFARE ESTIMATES FOR ONE YEAR


Total MSY-DEN local Passengers (both directions) 102,000
Expected market share for one daily flight (%) 70
Local MSY-DEN passengers on new flight 59,740 $450

Additional Traffic
Connections behind MSY to/from DEN 24,000 $425
Connections to/from MSY beyond DEN 12,000 $400
Connections behind MSY to/from destinations beyond DEN 4,500 $375

Total Passengers all Directions

Additional Cargo Revenue (=10% of pax revenue)

TOTAL REVENUES

INPUTS AND ASSUMPTIONS CALCULATIONS

Aircraft Type B767-300ER Annual Flights


Number of Seats 210 Annual Block Hours
Avg Pax per Flight
Total Annual Flights each direction (=98% completion of dai 358 RPMs
Passenger Yield
Block Hours MSY to DEN 8:00 ASMs
Block Hours DEN yo MSY 9:00 Seat Departures
Passengers Enplaned
Non-stop miles (MSY to DEN) 1383 Average Load Factor

Aircraft Operating Costs per Block Hour


Crew Costs $890
Fuel/Oil $3,280
Ownership $870
Maintenance $710
Total per Block Hour $5,750 DIRECT OPS COSTS

Indirect Operating Cost $0.02 per RPM PAX SERVICE


Traffic Servicing $22 per Enplanement TRAFFIC SERVICE
Aircarft Servicing $1,800 per Departure AIRCRAFT SERVICE
Promotion and Sales 9.00% of Passenger Revenues PROMOTIONS AND SALES
G&A $0.002 per ASM G&A

OPERATING COSTS
OPERATING PROFIT
OPERATING MARGIN (%)

You might also like