AIRLINE ECONOMICS

Cahit Kutay Uysal

AVM 101

OUTLINE The Basic Measures Available Seat Kilometer (ASK)

Revenue Passenger Kilometer (RPK)

Load Factor (LF)

Yield

Unit Cost

Revenue

Basic Airline Profit Equation

Examples

Conclusion

Bibliography

THE BASIC MEASURES

Available Seat Kilometer (ASK)

Revenue Passenger Kilometer (RPK)

Load Factor (LF)

Yield

Unit Cost

AVAILABLE SEAT KILOMETER

(ASK) The most common measure of airline

output is an available seat kilometer

If we have an aircraft with 500 seats

and flown at a distance of 10000 km

than we will have 5000000 seats

kilometer

TRAFFİC ndash REVENUE

PASSENGER KILOMETER

(RPK) Althought the airline produced seats

not all will be sold The sale of the

products will measured by RPK

So in the earlier example if only 400

out of the 500 seats were sold than

the RPK will be 4000000

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

OUTLINE The Basic Measures Available Seat Kilometer (ASK)

Revenue Passenger Kilometer (RPK)

Load Factor (LF)

Yield

Unit Cost

Revenue

Basic Airline Profit Equation

Examples

Conclusion

Bibliography

THE BASIC MEASURES

Available Seat Kilometer (ASK)

Revenue Passenger Kilometer (RPK)

Load Factor (LF)

Yield

Unit Cost

AVAILABLE SEAT KILOMETER

(ASK) The most common measure of airline

output is an available seat kilometer

If we have an aircraft with 500 seats

and flown at a distance of 10000 km

than we will have 5000000 seats

kilometer

TRAFFİC ndash REVENUE

PASSENGER KILOMETER

(RPK) Althought the airline produced seats

not all will be sold The sale of the

products will measured by RPK

So in the earlier example if only 400

out of the 500 seats were sold than

the RPK will be 4000000

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

THE BASIC MEASURES

Available Seat Kilometer (ASK)

Revenue Passenger Kilometer (RPK)

Load Factor (LF)

Yield

Unit Cost

AVAILABLE SEAT KILOMETER

(ASK) The most common measure of airline

output is an available seat kilometer

If we have an aircraft with 500 seats

and flown at a distance of 10000 km

than we will have 5000000 seats

kilometer

TRAFFİC ndash REVENUE

PASSENGER KILOMETER

(RPK) Althought the airline produced seats

not all will be sold The sale of the

products will measured by RPK

So in the earlier example if only 400

out of the 500 seats were sold than

the RPK will be 4000000

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

AVAILABLE SEAT KILOMETER

(ASK) The most common measure of airline

output is an available seat kilometer

If we have an aircraft with 500 seats

and flown at a distance of 10000 km

than we will have 5000000 seats

kilometer

TRAFFİC ndash REVENUE

PASSENGER KILOMETER

(RPK) Althought the airline produced seats

not all will be sold The sale of the

products will measured by RPK

So in the earlier example if only 400

out of the 500 seats were sold than

the RPK will be 4000000

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

TRAFFİC ndash REVENUE

PASSENGER KILOMETER

(RPK) Althought the airline produced seats

not all will be sold The sale of the

products will measured by RPK

So in the earlier example if only 400

out of the 500 seats were sold than

the RPK will be 4000000

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

MEASURE OF SALE RATE ndash

LOAD FACTOR

Is the rate of passenger to aircraft capacity

In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80

LF = Revenue Passenger Kilometer Available Seat Kilometer

It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

MEASURE OF UNIT REVENUE

- YIELD Avarage fare paid by all passengers

per kilometer

Yield measures average earnings

made by an airline by transporting

passengers per kilometer

Yield = Established Total Revenue

Available Seat Kilometer

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

UNIT COST (COST PER

ASK) This is the cost of the seat

Unit cost calculated same formula with

yield

Unit Cost = Total Revenue Available

Seat Kilometer

If the unit cost lower than yield

airlines will make a profit

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

REVENUE

What is the revenue

Ticket fares including fuel surcharge

In-flight sales

Extra or oversized baggage

Freight not linked to passanger

What is the not revenue

Taxes fees or other charges

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

BASIC AIRLINE PROFIT

EQUATION

RPM x Yield ndash ASM x Unit Cost

(Revenue) ndash (Operating Expenses)

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

EXAMPLES

We have a route

Aircraft First Class Economy

Class

10 Seats 110 Seats

600 TL 350 TL

A B

1000 Km

What is the yield

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

Yield Total Revenue RPK

Revenue (10600) + (110350) =

45700

Passenger 10 + 110 = 120

Distance 1000 Km

RPK 120 1000 = 120000

Yield Total Revenue RPK

= 45700 120000 = Nearly 038

The airline earned nearly 038 kuruş per

passenger per kilometer

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

Istanbul to Antalya 475 Km 100

TL

Istanbul to Bodrum 430 Km 150

TL

This price differencersquos reason

Same airline same fuel consupmtion

same crew salary

- Robert Crandallrsquos Yield Management

System

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

CONCLUSION

The basic measures for the calculate

profitloss for airline

Available Seat Kilometer

Revenue Passenger Kilometer

Load Factor

Yield

Unit Cost

How airlines detect their ticket prices

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf

BIBLIOGRAPHY

httpenwikipediaorgwikiAirlineEconomic_considerations

httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf

httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor

httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1

httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf