How is revenue figured?

myefre · **on:** November 04, 2007, 05:13:33 am

One of my routes has gone to the 1 euro fare. I have a constellation on that route. I have it as a 1 frequency. So that would be 218 seats? I would figure then 218 euros. The revenue though is 1032. So I am wondering why the difference?

Jps · **Reply #1 on:** November 04, 2007, 05:15:33 am

Seats x freq x price - costs (fuel staff) = your revenue

nofrills · **Reply #2 on:** November 04, 2007, 07:58:26 am

Maybe they're buying a lot of your food and drinks.

dktc · **Reply #3 on:** November 04, 2007, 01:40:13 pm

Quote from: "Jps"

Seats x freq x price - costs (fuel staff) = your revenue

Nope.

Seats * freq * ticket price = revenue

revenue - costs (fuel + staff) = DOP for that flight

(this is basic accounting knowledge

)

Air Elbonia · **Reply #4 on:** November 04, 2007, 04:45:15 pm

Quote from: "dktc"

Quote from: "Jps"
Seats x freq x price - costs (fuel staff) = your revenue

Nope.

Seats * freq * ticket price = revenue

revenue - costs (fuel + staff) = DOP for that flight

(this is basic accounting knowledge )

Close.

(Seats * Freq * ticket price) + (magic formula * food/drink prices) = revenue.

revenue - costs (fuel, staff) = DOP.

myefre · **Reply #5 on:** November 04, 2007, 07:40:10 pm

OK, so how is a round trip flight on a 109 seat plane that is selling ONE euro tickets able to generate 1032 euros?

LOT 737-300 · **Reply #6 on:** November 04, 2007, 08:15:42 pm

Quote from: "myefre"

OK, so how is a round trip flight on a 109 seat plane that is selling ONE euro tickets able to generate 1032 euros?

What extra things are being charged, such as Food and Drinks so on. I think that might cause the DOP on the route to rise.

myefre · **Reply #7 on:** November 04, 2007, 08:48:13 pm

Quote from: "LOT 737-300"

Quote from: "myefre"
OK, so how is a round trip flight on a 109 seat plane that is selling ONE euro tickets able to generate 1032 euros?

What extra things are being charged, such as Food and Drinks so on. I think that might cause the DOP on the route to rise.

I am getting this figure when I create the route. The food and drinks are on a different line I would figure.