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Old 16th Jul 2014, 07:43
  #50 (permalink)  
Expressflight
 
Join Date: Jul 2006
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tophat27dt

Without knowing the yield it really isn't possible to know what load factor represents going into profit. Even then are we talking about a profit over the operating costs of the flight itself or when the marketing costs etc. are also taken into account?

For an established route you might say that 65% load factor would probably show a profit but that's still a very approximate figure in my view. At present I assume that Stobart Air will want to build the market at the cost of yield.

Marketing is certainly very important, but also very expensive. You are looking at something like 100,000 Euros in the first 6 months to marketing just one end of the route to its home market alone.
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