I have been playing a while on airline sim, found out that my profit margin
is keep stable between 45% to 50%, and i cannot grow further...
and i found that some of the routes occupancy rate keep on falling
given no new competitors and no change in price, equipment and service
and it is very difficult to start a profitable international route
for example HND-PEK can hardly fill a E195
I have been playing a while on airline sim, found out that my profit margin
is keep stable between 45% to 50%, and i cannot grow further…
and i found that some of the routes occupancy rate keep on falling
given no new competitors and no change in price, equipment and service
and it is very difficult to start a profitable international route
for example HND-PEK can hardly fill a E195
I’m not sure about this post but will try to give answers.
45-50% profit margin?
I’d call this excellent, though this margin stand alone doesn’t say much.
What’s interesting is the margin averaged over an entire AGEX cycle.
Your load factor is decreasing even though you didn’t make changes?
Your competitors take your pax - not necessarily on this particular route, but via connections.
Can’t fill an E95 on HND-PEK?
Create more useful connections for this flight!
what is AGEX cycle?
my company connections precentage is very low...
I think there is a difference from continent to continent. So high margin? Are you seroius? :blink: Ok, that sould be China.
Asia works very good, America too. In Europe got anyone more than 20%?
Have only 31% in Canada. :unsure:
You could easily run an enterprise at around 60% margin if the naked margin is your goal and as long as you don’t face competition. Still this wouldn’t tell much about how well an airline is doing.
I agree, when the AGEX was 666 i was on a 15-17% profit margin, with a 60+ load, but with the AGEX above 1000 its a lot higher and the loadfactors also. So no you cant say how and what.
Sorry
I agree, when the AGEX was 666 i was on a 15-17% profit margin, with a 60+ load, but with the AGEX above 1000 its a lot higher and the loadfactors also. So no you cant say how and what.
Sorry
What is AGEX? Where can I find such data?
AGEX is a market level index (the higher the better) and you can find it under Markets and Exchanges. It affects passenger demand levels on the server. Lower than 700 is tough, higher than 1000 is money bonanza.
hi,
also profit margin isn't that useful to measure "growth". if you want your airline to grow, add more flights and maybe new destinations :)
and - forget about international routes when you're based in China. I've got some 400 aircraft on Devau and still think "maybe later" when it comes to international connections. which server are you playing?
hi,
also profit margin isn't that useful to measure "growth". if you want your airline to grow, add more flights and maybe new destinations :)
and - forget about international routes when you're based in China. I've got some 400 aircraft on Devau and still think "maybe later" when it comes to international connections. which server are you playing?
I am in croydon, based in Japan
I got my HND-ICN route with really poor loading..
and Japan has not much domestic airports ... limited growth
It isn’t enough to offer a flight and hope that your seats get booked, you need to develop a domestic network to feed your international flights. Each connecting passenger consumes two seats, one on the inbound to your hub, and one seat away from it, which boosts your load factors and earns you more money. On HND-ICN right now, you’re up against five established competitors (four Japanese airlines, and one from South Korea) with sizable connection networks and subsidiary regional airlines for more feed.
With competition, you need to fight for passengers by offering better seats, better service, and/or lower prices. Your net profit will be less, but the flight ratings will increase, and so will your load factors.