Freight capacity minus business

Greetings,

I see in all my flights that the cargo units are mostly very underbooked, which is why I now completely waive cargo and bulk in the settings.

Does the waiver automatically mean that I no longer make a loss through the cargo capacity or is there another way?

Especially with my 767 nit about 85 cargo units, I make every flight -10K …

Please help

Getting rid of your cargo from pax a/c is almost always a bad idea. Here’s why:

The only direct cost (as far as I am aware) for taking cargo on a passenger flight is “Cargo Handling” under “Variable Costs” on the flights finance page. For example, on one of my 727 flights with full cargo I can fit in 16CU with full pax load. The pure revenue from this cargo is AS$1,754, the Cargo Handling cost is AS$400. Therefore the CM I profit is AS$1,358. This total is the real profit/loss from taking the cargo on that particular flight, therefore it is clearly worth taking the cargo.

Because Cargo Handling costs scale with the amount of cargo carried, there are very few reasons or situations where you want to reject all cargo. After all, it only fills cargo if there is spare capacity in terms of max take-off weight.

While it may seem cargo is making a loss, this is only because all other costs such as Fuel, Landing Fees, Maintenance etc are spread across both passengers and cargo in the Flight Costings page, in a way that loads more costs against the Cargo column. In other words, these costs are the same no matter whether you have loaded the cargo or not (except perhaps some extra fuel, because of the extra load?).

Hope that makes sense?

TLDR - It’s almost always worth taking the cargo with any spare capacity.

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Thanks a lot seems clear to me now :slight_smile:

And what about taking freight but no bulk?
Is that clever?

No Problem :slightly_smiling_face:

I’m not sure on that, I believe it is a/c dependant. Personally I leave that on default but it can probably be optimised per route or a/c.

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I believe one reason why you would take cargo off your flights is because the turn around time falls. Also falls with taking freight but no bulk etc.

If you are wanting to run a low cost carrier model you will want to optimise turn around times as much as possible. Turning cargo off might allow you to squeeze in more flights per day.