Originally Posted by
CEJM
Homonculus, as far as I can make out it will be both. Happy to be corrected though.
Even if APD is reduced/abolished then I am not sure ticket prices will come down. Flybe is unable to make a profit at current ticket prices so in my opinion any reduction in APD will not (or very little) be reflected in ticket prices. Instead the extra money will be used to shore up the company finances.
Sorry WCF, I disagree. If they can’t turn a profit now then taking the tax element off the ticket will not make the company anymore profitable. Even if that ticket is more attractive, the total below the line stays the same.
We will have to agree to disagree then but my belief is that change one thing and the whole dynamic changes. After all profit is linked to sales! In order to be more profitable (or to recover from loss making) you need to be more efficient and sell more. It's quite simple really.