PPRuNe Forums - View Single Post - Two-hundred and seventy-five 777X ?
View Single Post
Old 25th Apr 2013, 07:31
  #27 (permalink)  
fliion
 
Join Date: Dec 2002
Location: usa
Posts: 1,005
Likes: 0
Received 0 Likes on 0 Posts
White Knight,

Regarding your query - the aviation financial community uses a conceptual metric to measure at what point the flight "breaks even"

The theory behind it is if you filled all four cabins (F,J,Y & Bulk) in equilibrium the point at which you start to make money is "The break even load factor"

Emirates publishes this every year in their report along with the actual load factor giving you the crack or spread ie the % profit.

It has been gradually reducing from 64% 3 years ago to 63% two years ago. I understand they are now at the 62% due to the advantage of critical mass. As a comparison most full service intl carriers B/E is low 70s with LCCs in the high 70s

Emirates is considered the most profitable airline in the world because of the B/E not necessarily what we make.

Hope that clarifies.

f.

Last edited by fliion; 25th Apr 2013 at 07:35.
fliion is offline