Originally Posted by
chuboy
What are the demands of the union - i.e. how many extra dollars per flight is a "few"?
If you look at the profit vs revenue of any airline in the world, you will see that margins are indeed tight. Just saying.
It is only tight because airline use subjective inclusions and exclusions to massage their CASK (Cost of ASK) this statement although objectively true is very difficult to quantify.
Further non operating overhead is indirectly carried in the seat cost: Something has to pay for diversity management, administration and the like. With around 90% of that revenue coming from selling seats, it makes for a tight business.
By way of example, on South East Asian carrier includes and engineering cost component in the Fuel Included CASK (which seems reasonable) another carrier in the same region does not.