Enhancing Airline Profits through the Application of Route and Network Profitability AnalysisThe ability to accurately and timely measure the profitability of flights can significantly enhance airline profits and constitutes the basis of a professional network management process of an airline.
Route Profitability Analysis and Network Profitability Analysis represent two common approaches to measure the profitability of flights. The traditional Route Profitability Approach solely focuses on the onboard segment of a single flight and determines its profitability independent of connecting flights. In contrast, the Network Profitability Approach takes all Origin & Destination (O&D) traffic into account which traverses through the analyzed flight. Thus, it assesses the financial contribution of the flight to the airline’s overall network profitability
|
