RE:Cost per seat mile - profitable seat saleOn May 10 I ran some very rough numbers and concluded that a one-way seat sale - Edmonton to Toronto above $C412.00 would represent a profitable seat price on that run, given that the planes are full.
My post on May 10 is copied below.
Note that the average seat sale price - one way - Edmonton to Toronto is approximately $C600.00, based on looking over their offerings on line. They probably get more per seat with checked luggage, meals, etc.
So, I think Air Canada is now in a profitable position, ignoring all the noise of terrible situations at the Toronto Airport.
When I originally posted my back-of-the-envelope calcuation I was told that I was naive and stupid, but I didn't actually see another analysis.
So, I have decided to buy today.
cleareye.
My post of May 10
Cost per seat mile - profitable seat sale
Looking at their quarterly report.
Their adjusted cost per available seat mile is 15.6 cents.
Looking at what that might mean?
Flight from Edmonton to Toronto - 2000 miles.
Airport taxes per seat at each end 50.00 - total 100.00 for that flight.
For the Edmonton to Toronto run the cost of each seat - 2000*.156+100 = $412.00
So, if that is anywhere near accurate, then if they fill a plane and their average seat price is above $412 then they are making money.