DJ profit $97,000,000
Number of passsengers 16,000,000
Profit per passenger = $6
This actually increases to $8.50 without the startup costs of V Aus. So put simply if you then expanded your operations to try and capture more bums on seats and kept your operating costs the same you would be able to continue to make good money in an environment when everybody else is cutting capacity because their costs are out of control.
So lets see: 20 million pax equates to a $170 million. Can
VB achieve this target within the next financial year? At the moment they are looking at 17.5 million pax YTD AUG 08 = $148.75 million. QF are handing them customers in certain markets, the Federal Govt has to travel with them for 25% of there bookings (currently at 12%).
Interest rates are coming down, oil prices have come down, the economy in Australia is still hanging in there and the US Govt is probably going to bail-out the US economy.
So once again I am coming to the conclusion that things aren't as bad as the minority in here believe.