CASM VS. Airfares
03-29-2006, 07:40 AM
#1
Gets Weekends Off
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Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,057
CASM VS. Airfares
I saw a figure for the cost per available seat mile (CASM) for United excluding fuel. I thought about it for a second, and it downright shocked me.
I read United's CASM EXCLUDING FUEL was about .08 cents. So to fly a seat across the country (Lets say LAX-JFK) is 2500 miles X .08 cents per mile. That's $200, or $400 round trip, and that does not include fuel!! So if United sold $400 round trip tickets from LAX-JFK, they would only break even if their planes were 100% full, and they did not have to pay for any fuel. Isn't fuel an airlines LARGEST expense?
My question is what do you believe is the CASM for fuel? Then I'd just like to hear everyone's opinion about this information. I think United has one of the lowest CASM's of the legacies because of lower labor costs, newer fleet, no pension costs, and all the debt they were able to shed in bankruptcy. If United looks this bad, how bad are American, Delta, and Northwest looking.
I read United's CASM EXCLUDING FUEL was about .08 cents. So to fly a seat across the country (Lets say LAX-JFK) is 2500 miles X .08 cents per mile. That's $200, or $400 round trip, and that does not include fuel!! So if United sold $400 round trip tickets from LAX-JFK, they would only break even if their planes were 100% full, and they did not have to pay for any fuel. Isn't fuel an airlines LARGEST expense?
My question is what do you believe is the CASM for fuel? Then I'd just like to hear everyone's opinion about this information. I think United has one of the lowest CASM's of the legacies because of lower labor costs, newer fleet, no pension costs, and all the debt they were able to shed in bankruptcy. If United looks this bad, how bad are American, Delta, and Northwest looking.
Last edited by ryane946; 03-29-2006 at 07:42 AM.
03-29-2006, 09:22 AM
#2
Need More Callouts
Joined APC: Dec 2005
Position: Unbridled Enthusiasm
Posts: 2,143
Maybe, just maybe, these a-holes running the airlines could raise airfares. I'll bet then they wouldn't feel so bad about accepting $$ millions $$ of dollars in bonuses while the employees get cut to the bone.
Naw, they don't give a sh!t about anyone except themselves and their overpriced salaries, nevermind.
Naw, they don't give a sh!t about anyone except themselves and their overpriced salaries, nevermind.
04-05-2006, 07:44 AM
#3
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Joined APC: Dec 2005
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I have some good news and some bad news.
Good news: Airfares have risen by 10% from February 2005 to February 2006, due in large part to the shutdown of Independence Air and the expiration of a portion of Southwest's fuel hedges.
Bad News: The average ticket price is still 16% below what they were on September 11.
Good news: Airfares have risen by 10% from February 2005 to February 2006, due in large part to the shutdown of Independence Air and the expiration of a portion of Southwest's fuel hedges.
Bad News: The average ticket price is still 16% below what they were on September 11.
04-05-2006, 03:42 PM
#4
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Joined APC: Oct 2005
Position: CR7 Capt
Posts: 1,621
Ok, Here it goes.
This is what I figured and it could be wrong, some number maybe off a little. First I took the A320 which I found supposedly burns 5900lbs an hour or 842gal per hour. So lets figure LAX to JFK 4hrs flight time. That would a total of 23,600lbs of fuel burned. Translated to total gallons that would be 3371gals figuring fuel wgt at 7lbs per gal. Now lets the airline gets the fuel for $2.00 a gallon that would be $6,742 one way. So divide that by 150 seats you get roughly $45 per seat for fuel. Hope that sort of answers your questions. I kind of came up with that formula myself.
This is what I figured and it could be wrong, some number maybe off a little. First I took the A320 which I found supposedly burns 5900lbs an hour or 842gal per hour. So lets figure LAX to JFK 4hrs flight time. That would a total of 23,600lbs of fuel burned. Translated to total gallons that would be 3371gals figuring fuel wgt at 7lbs per gal. Now lets the airline gets the fuel for $2.00 a gallon that would be $6,742 one way. So divide that by 150 seats you get roughly $45 per seat for fuel. Hope that sort of answers your questions. I kind of came up with that formula myself.
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