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How do airlines make money?


How much is a 747 and other aircrafts?

How much is fuel for a 747 to New York, average selling price, amount of flights each craft has per day etc??

I have heard a jumbo costs $200k to fill up, $220m to buy

How do these airlines survive with tickets costing so little, in Ryaairs case, nothing
Good reply Teddy, but I know a 747 is at least 10 times (brand new) what you stated, 10m for a 20 year olf out of regular service one maybe

As for some early answers, yes I could get the answers from google, bit by bit, but that’s painstakingly boring and if you have enough time to reply to something that you’re not interested in, surely on that basis I could expect you to do the work for someone much busier and important than you, like myself

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14 Comments

  1. Mickey B

    Look this stuff up on Google.

    Posted on 09-Nov-09 at 4:08 am | Permalink
  2. Shoeb A

    with the help of cost cutting or by increasing the fares

    Posted on 09-Nov-09 at 4:18 am | Permalink
  3. sissybug

    Search this yourself. Why should I do your work.

    Posted on 09-Nov-09 at 5:10 am | Permalink
  4. Teddy

    plane fuel is damn cheap, very cheap, a 747 will cost about £10mill, but when ticket can cost £500 and the plane holds 300 people it doesn’t take long to make your money back. Planes are alway in the air, they don’t like having them at airports because it costs the airlaine too much money to keep it there (tarmac fees). If it’s in the air, it’s making money, and a lot of it too

    as for people telling you to work it out yourself, well isn’t that the whole point of YA? Ask a question get an answer, unless I’ve got the wrong idea

    Posted on 09-Nov-09 at 6:02 am | Permalink
  5. Englishcad

    By getting you locked in a metal box at 40000′ and selling you over priced crap you would never usually buy in a million years. Another good wheeze is to stiff you if your baggage is half an ounce over …..

    Edit * Teddy where the hell can you get a 747 for 10 million Cads learjet cost 25 !

    Posted on 09-Nov-09 at 6:12 am | Permalink
  6. screwed by thee orange box

    I’m sure that the plane doesn’t use up a whole tank of fuel every flight.
    A plane can easily fly for over 8hrs on a tank of gas. A three hour flight in the U.S. sometimes costs around $1000. 200-250 people per flight. Do the math.

    Posted on 09-Nov-09 at 6:48 am | Permalink
  7. George L

    your question is not very specific and there are many variables

    a 747 cost per seat is cheaper than other planes. Financing at a good rate matters, the efficiency of the plane matters on fuel and repairs, it gets political to establish an airport gate and some alternate airports can be more favorable. big companies squeeze fuel from new airlines if they do not have connections

    Posted on 09-Nov-09 at 7:08 am | Permalink
  8. James H

    Because they spend less money than they bring in. Planes are always flying, a fully loaded jumbo from Syd to LA would havd $700K in fares. Do the math.

    Posted on 09-Nov-09 at 8:06 am | Permalink
  9. John B

    If you look at the overall “profit and loss” statement for the US airline industry, you’d find that since the beginnings of airline aviation when Delta stopped dusting crops and started carrying passengers, the airlines as a whole have never made money. There are some exceptions, Southwest, Jet Blue, but for the most part the airlines were supported by government subsidies during the first fifty years or so. Since deregulation in 1978 though, many of those dinosaurs are dying off and the lean and mean will create an entirely new industry.

    Posted on 09-Nov-09 at 8:35 am | Permalink
  10. RGTIII

    1. Most airlines do not buy the aircraft outright, they lease them. Those payments are less than what the mortgage payments would be.

    2. Freight. You are forgetting that, in your example, the freight bays are not entirely used up by travellers suitcases and the like, so they transport frieght in the bays, that pays very well.

    3. Not every ticket for a seat on the aircraft is “free”. Take your 747. Business class tickets often cost $2k – $5K, while 1st class can go as high as $10k! (Singapore airlines LAX to SIN).

    4. Tickets are sold on a scale. Ever try buying a ticket close to the date you want to travel? It’s called a “walk-up” fare, and it’s very expensive.

    5. Other routes. While an airline my post dramatic losses on some routes, others are very lucrative and post very nice profits offsetting any losses from the losing routes.

    6. Goverment trasnportation. Did you think the military transported all those guys to Iraq? They get premium prices to charter an aircraft for Uncle Sam.

    7. Load factors. High load factors is like selling cars on volume. You get a better deal, and they still make money because every seat in the airplane is filled.

    Of course, this is a fairly simplistic view, but it’s the majority of the money-making schemes the airlines use.

    I hope I’ve answered your question.

    Posted on 09-Nov-09 at 9:01 am | Permalink
  11. futuretopgun101

    The 747-400 can be brought for about £100million (about $230million). Other variants cost more or less.
    However, an airline will not typically buy one jet and buying 20 at a time will bring down the price per unit.

    The ‘400′ can carry almost 217000 litres (about 56000 gallons) of fuel (enough for more than 8000 miles) though very rarely will it be filled to the top. Theres no point carrying extra weight if you only want to fly 4000 miles from London to New York with a bit extra.
    Recent prices for fuel in USA are about $4.50 a gallon, in the wing.
    So to fill a ‘400′ to the top, you are looking at about $220000.
    However fuel cost will probably be much less then this because you could buy enough fuel for 3 months in advance and have a bulk discount.

    These fuel figures vary massively between even different 747 variants so its impossible to list fuel figures for all competing airliners.

    Ryanair does not fly any sort of 747 and only fly short haul flights. Its much cheaper to fly their 737 – 800’s because they are about a 3rd of the size of any 747. And their tickets are not free, there are all sorts of hidden charges. The tickets are free, but there are shitloads of hidden surcharges which Europe and the UK government is trying to crack down on.

    Posted on 09-Nov-09 at 9:09 am | Permalink
  12. sirin

    I work for an airline and there are some things you are missing….

    *CARGO!! Cargo is the HUGE money maker in the airline industry. When my airline first started they would take off on a transatlantic flight with literally 8 people on board!! Why? The cargo hold was soooo full it was more worth it to take the 8 people and cargo!

    *a lot of airlines like ryan air buy their airplanes new, use them for several months…and then lease them out to other airlines….gaining a deal of interest from them…

    *ryan air may cost “nothing” but you still pay taxes and airport fees…you actually pay for your luggage to come on the flight–just not yourself…sooo actually you are paying ;)

    Posted on 09-Nov-09 at 10:02 am | Permalink
  13. walt554

    Some don’t. Eastern was one, TWA, etc

    Posted on 09-Nov-09 at 10:28 am | Permalink
  14. Gary Williams

    Errrr…. by charging you to fly with them! also Cargo!

    Posted on 09-Nov-09 at 10:59 am | Permalink

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