Airline clients often ask me “Why report profitability at the flight level rather than the route level?” Where an airline is only running Aircraft Round Trips (ART) once a day on a particular route the flight cost from one day to the next doesn’t change much and route level costing is enough.
A well-known long-haul carrier told me its business model was daily round trips in a 24 hour cycle. I couldn’t say that implementing ‘flight route profitability’ would add value to their existing route level profitability reporting. In my experience, however, this is a rare example and there are five good reasons to make the investment in a flight level profitability solution.
Flight (“leg”) profitability is a needed for aircraft round trips contribution.
Schedule/frequency decisions need flight level route profitability.
Flight level profitability is a key component of Network Contribution.
Flight level route profitability supports “dynamic” pricing.