Originally Posted by
Icarus2001
Thanks MickG…
Revenue per hour, as you know, is not a measure of profitability. So still looking for a source for that claim.
Revenue per hour (or kilometre) - cost per same unit over revenue gives you profitability. Sydney - Melbourne sees relatively very high revenue (average fare price) by pretty much any measure. If you take the latest BITRE discount fare data of $130 for SYD-MEL you're looking at around 18 cents per km in revenue. The average revenue per passenger kilometre for that route is going to sit well into the 20 cents per km range. There aren't many routes that give you that sort of coin.
CASK ex-fuel should be sub 9 cents. Given the pax density on the route you get load factors and aircraft utilisation that are relatively very high, so CASK for that route is probably closer to 8 cents ex-fuel.
That sort of revenue V cost dynamic is not common.