Originally Posted by
doz4dllrs
"According to the SEC documents filed by Frontier, the carrier’s financials since its transition to a ULCC business model have been very strong. From 2014-2016 revenue grew only about 8%, but the balance of the revenue coming from ancillary revenues jumped from 16.6% to 42.3% in 2016, indicating a successful transition to the ULCC business model.
Moreover, profitability jumped from a 14.3% operating margin in 2014 to 18.5% in 2016. Perhaps more impressively, Frontier expanded its operating margins between 2015 and 2016 even as most of its US airline peers saw margins and profits go in the opposite direction.
What you’re left with is a carrier that generated a $317 million operating profit and a $200 million net profit off of $1.71 billion in revenue in 2016.
Whatever the flaws with the IPO (and I will get into that below), Frontier’s margins are comparable to those of its larger ULCC competitors Allegiant and Spirit, and are much stronger than those of Virgin America at the time of its IPO back in 2014. Moreover, the ULCC business model has a proven track record of success around the world with a consistent path of expanding profits for ULCCs around the world in the last two decades."
317 Million operating profit or 200 million net?
So what was F9's profit divided by 1100 pilots?
$288,181 or $181,818?
It's no Delta, but its not bad.
No it’s not bad. But it’s not Delta. To compare apples to apples: Delta 2016 net profit was $4.37 billion. Divided by 14450 pilots and you get $302,000.
$302,422 vs $181,818.
My original point was you can’t just look at profit margin when comparing.
But again, I’ll reiterate that Frontier CAN afford to pay industry standard. Quick math using your example: each pilot could get a $100k per year raise and the company net profit would still be $81,000 per pilot (or $89 million for the year). However good luck convincing the mediator or that.