I know that you have seen this question a million times before but, how much do you adjust the initial ticket price so you can have a profit. (5%,10% or more?)
And, another question would be… what’s the target cost per passenger, when talking of an on-board service(<800)? What about a 800km+ flight?
My airline is Swede Airlines, Pearls, and I’m operating a fleet of Dash8-400s. They’re currently configured as 8C55Y, but I’m thinking of operating all economy due to low profit. I can’t seem to manage the percentage I need to adjust for ticket prices, and I’m afraid that my flights will operate on with less than 50% capacity.
You can calculate most of the costs for a specific leg using the aircraft type evaluation tool in the airplane dropdown, which gives you fuel costs, maintenance, aircraft handling fees, ATC and landing fees. My limited sample (one flight) matched exactly. Passenger and cargo handling fees (provided you haven’t signed a handling contract) are $11/passenger and $25 per unit of cargo. Crew and capital costs are dependent on your personal circumstances, so the values from the tool aren’t reliable.
You require a minimum of 1 flight attendant per 50 passengers, per class, more attendants will raise your crewing costs but supposedly have benefits for your image. I haven’t been playing long enough to fully understand how the crew costs are calculated, nor the effects on image.
Personally, I match the prices set by my competitors, since I haven’t found a single country doesn’t have any competition. However, there’s only one other airline in my hub’s country, and they’re not gigantic, so there’s plenty of passengers for me.