Originally Posted by
VisionWings
even on this document it’s 114$/ ticket+ancillaries.
the q4 average was 117$/ticket+ ancillaries.
Based on the fact we can’t actually cover our unit cost with the ticket price alone. Just look at our profit and loss over the last few years to see that. We need the ancillaries or a higher fare price. We take advantage of reduced taxes on ancillaries compared to ticket price to help boost profit. But we still need that extra 71$/ticket per passenger just to get a little bit of profit.
Huh?
In order to determine the amount of additional TICKET price needed (not ticket and ancillary but JUST ticket), we need to know the actual ticket (fare) revenue per passenger. It was about $44.
Now, we need to know how many passengers we carried. It was about 33.2M. That math comes to 1,460M in just FARE revenue. Raising the fare price by $10 would raise revenue to 1,792M or a difference of 332.8M.
There were 2202 pilots on payroll as of Dec 31, 2024. We don't have good #s of what PILOT salary costs were but if we use an average yearly salary of $250k, that cost is estimated at 550.5M. Adding another 40% would grow that to 770.7M. The difference would be 220.2M.
A $10 fare increase would more than cover the additional cost of the labor (this doesn't include additional 401k, increases due to additional vacation weeks, etc). And it ASSUMES that we'd carry at least the same # of passengers - according to BB, that wouldn't happen w/ a fare increase...