What are the main factors that airline profitability is dependent on?

Question

Quizplus · Accepted Answer

Airline profitability is mainly dependent on cost, load factor, and yield. Cost refers to the expenses incurred by an airline in operating its flights which includes fuel cost, maintenance cost, staff salary, and other costs. Load factor refers to the percentage of seats filled on an airline's flights. The higher the load factor, the more revenue is generated per flight. Yield refers to the revenue that an airline generates for each passenger-kilometer flown. A high yield means that the airline is generating more revenue per passenger. Flight distance and revenue are also important factors, but they are not as essential as cost, load factor, and yield.

What Are the Main Factors That Airline Profitability Is Dependent