Route Profitability Models

 

As industry insiders know, airline profitability is one of the toughest things to pin down. A city can fill airplanes day after day with a 90% load factor, and still lose money for its airline partners. At Sixel Consulting Group we’ve used our decades in airline management to help airports pin down the profitability of their service – not just passengers, revenues, and load factors.

Our unique formulas give us an inside look at how each route contributes to an airline’s bottom line. In many cases, our profitability models develop route profit and loss projections that mirror those found in airline board rooms.

We also apply our formulas to potential future routes, to give an airport an idea of how new service will perform, before the recruitment process begins. While these future profitability models differ from those the airlines use, in that they take into account passenger stimulation and reduced leakage, they can give an airport an idea of the potential of specific routes, and the need for revenue guarantees and other risk abatement in certain cases.
 

         

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