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Route Profitability Models
As industry insiders know,
airline profitability is one of the toughest things to pin down. An
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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