What is a acceptable level of return for a 10 jet operation? It wouldn’t be much. A couple of million tops?
So straight from Rex’s own cost analysis 10 aircraft could easily translate into $120m in profits 😂
OPERATING STATS & REVENUE PROJECTIONS
The best way to have a good handle on the revenue projections is to consider the following (using the Syd-Mel route as a guide) ▪ One aircraft carries about 300,000 pax a year at 80% load factor
▪ Average ticket price is $200 (pre-Covid)
▪ If Rex’s cost advantage is 30% then that means $60 per ticket
▪ Giving up $20 as fare discount and assuming the $40 as profits would translate to $12M profits per aircraft
▪ 10 aircraft would translate to $120M profits
▪ In reality, the average cost per passenger (crew, fuel, engineering, lease etc) for typical carrier would be about $50 ▪ Depending on where the average ticket price will land, the profits per aircraft could be very significant”