How much are the Airlines losing?
I am intrigued to know just how much the loss making UK Airlines are really losing whilst this situation continues. Some companies where forcasting a loss of at least 3 million pounds a week before this happened so by how much has this figure now increased?
If the airlines were losing money by flying surely they are losing less by being grounded. Obviously the overheads and wage bill remain the same but I doubt whether these costs are greater than when the airlines operated normally.
The vast majority of expense is in the cost of the fuel so naturally the monthly fuel bill will be greatly reduced,in the region of 1.5 million dollars per day for an average long haul airline, BA more like 5 million.With the aircraft operating at full capacity for the next couple of weeks, the passenger ratio per kilo of fuel burnt will be reduced creating greater revenue than would have been originally forecast.
The biggest losers from all of this are the profitable airlines and the third party workers associated with airport operations, lets hope we all get flying again very soon.