Originally Posted by
Flightrider
That used to be the old CAA route licensing hearing principle and it no longer applies. Most airlines now are seeking a break even at worst in year one, profit by year two. Margins are so thin that you can’t take short term losses in any magnitude.
So given that the figures have increased to 73% LF within 4 months there's still another 8 months to grow before it needs to break even. There has been some good deals from CWL, but also similar pricing with other carriers at other Airports. Various reports that the front end is also doing well and there's some cargo being carrier through which will certainly help yield. It wouldn't be a surprise if the operating costs are initially quite low at CWL in comparison to other Airports.
I do think this is a much longer term project though for QR and the Welsh Government. Things won't instantly change with the economy after a few months of a new route, but if it helps boost the Welsh economy, whether that be in additional business travel, more money to spend on holidays or increase in industry leading to more cargo, then eventually the results will be seen.
I was sceptical over this route, especially seeing as QR in general don't seem to have high LF's at other airports. But I must say I'm impressed on the results in such a short time. Hopefully it's sustainable through the winter and further beyond.