Starting out, need help !!

Hi everyone, I am starting out with my airline and making 200k daily profit which is great. However whenever I look at my financial sheet. This is what I see 

what is going on here ?? My airline route is from Las Vegas to Dallas. I lease 1 gate in each airport max out the hours of my 2 planes. Am I missing anything ?? 

Expenses will always exceed revenue when you have just started up an airline In the first couple of months so there is nothing to be worried about. When You have enough funds you need to expand your fleet and operate on new and existing profitable routes which will help you get a much better looking income statement. If you need funds to lease aircraft I would take out a $5 million dollar loan.

Expenses being more than net income is something I think a lot of new players are worried about, but really all you have to do is expand your route network and fleet before you start losing money. It's nothing to be worried about.

Hi everyone, I am starting out with my airline and making 200k daily profit which is great. However whenever I look at my financial sheet. This is what I see 

 

 

Total Revenue $432,000

 

Total Expenses       $3,491,467

 

Profit Margin     -708.21%

 

Net Income / Loss   $-3,059,467

 

what is going on here ?? My airline route is from Las Vegas to Dallas. I lease 1 gate in each airport max out the hours of my 2 planes. Am I missing anything ?? 

Check the seating demand on that route. If it's cluttered by other airlines then you're going to be the odd man out and lose money like it was coming out of a faucet.

My suggestion would be to look for less-traveled routes with a shortage of demand (an extremely difficult thing to do except when worlds have recently been reset, which happens pretty rarely) and get more revenue out of your route.

Check the seating demand on that route. If it's cluttered by other airlines then you're going to be the odd man out and lose money like it was coming out of a faucet.

 

My suggestion would be to look for less-traveled routes with a shortage of demand (an extremely difficult thing to do except when worlds have recently been reset, which happens pretty rarely) and get more revenue out of your route.

If you want to cut costs, I'd suggest that you fly from LAS(Las Vegas Mccarran) to DAL(Dallas Love field). The gate cost is much lower ($79,860 compared to $472,261 at DFW). That will save you roughly $400,000 a month. You could also raise the prices on the route, cut employee saleries and fired any reserve employees from your staff.

If you want to cut costs, I'd suggest that you fly from LAS(Las Vegas Mccarran) to DAL(Dallas Love field). The gate cost is much lower ($79,860 compared to $472,261 at DFW). That will save you roughly $400,000 a month. You could also raise the prices on the route, cut employee saleries and fired any reserve employees from your staff.

Ya but he has to fly planes smaller than 56 seats (58) so it will make up for it.

 First off, like said above, you are on a major trunk line between 2 major airports, plus you have 2 very expensive gates to pay for each month. Those routes will get clobbered very soon, if not already. You really need to HQ at a airport with gate lease of less than 100,000 a month while learning and only fly to under 100,000 gate lease airports. The airport needs to be big enough to offer decent routes, SNA, SMF, AUS, SAT, TPA all come to mind really fast. Pick the right plane for the route you plan to fly. Example, I use A320-200 for routes of 1400-2000 miles, 737-300 for routes at 800-1400 miles. Of course that varies depending on what route I trip over empty and what I have avail at that moment.

I will use props for routes under 400 miles.

Also, from looking at your airlines, you are using 20 year old 747 on short routes, the maint on those birds can be a killer for a new airline. Base Maint monthly on a 747 is 8 mil or so a month alone, then you have over a mil a month on each bird at 20 years old.

Just looking at your average gates, you are flying to the biggest airports in the US, each of your airlines is shelling out over a mil a month in gate leases on top of the monthly maint for you fleet. Add to that, they are trying to compete with much lower fuel usage planes, who can drive the price way lower than you can tolerate.

Going further, R0, on your LAS-MCO route, you face me on that route, I am making 703,192 a day on that route.