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Profit Margins


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#1
Pineair

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Has anyone any idea what would be a reasonable profit margin to look for when playing AE? Currently ,in R5, running at 22% although it was much higher in the early years. This despite paying staff significantly above the industry average. Paying so much that, apart from Executives, have had Nil staff turnover for years.

Would Profit Margin be a better measure as to the success, or otherwise, of an airline than say book value?

#2
alex1154555

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I'd say 22% is pretty damn good.

#3
Yuxi

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Mine usually hovers around 30%. When I had 650 idle aircraft out of 1800 total, it went down to 20% and hasn't recovered since (I never do layoffs and my employees are too busy :dance: to quit) :whistling:

#4
criver

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If airlines were valued like the stock markets value them, profit margin would be a big part of that valuation. I'm in R6 and and now on the homestretch to the finishline I can't get mine much above 20%.

#5
52N13E

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I never do layoffs and my employees are too busy :dance: to quit)


There should be a pax boost for happy, motivated employees.

I mean, less complaints and more partying aboard are always fun, right?


(6-11% here. Including fleet renewal costs.)

#6
Yuxi

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There should be a pax boost for happy, motivated employees.

I mean, less complaints and more partying aboard are always fun, right?


(6-11% here. Including fleet renewal costs.)


Employee morale factors into airline reputation and on-time performance, so it indirectly helps you :P

#7
52N13E

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Employee morale factors into airline reputation and on-time performance, so it indirectly helps you :P


Airline rep was obvious, on-time performance not. Thanks.

#8
the DOC

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My profit margin is about 27% but used to be about 30%

#9
2ndAcr

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Mine bounces between 18% and 23%........pretty much hovers along that range.

#10
M4matthew

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Mine bounces between 3.5% and 4.5%

#11
Sheepy

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Mine hovers between 0.5-2.5%, which is excellent, as a real airline is in the region of 1.5%.

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#12
M4matthew

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Mine hovers between 0.5-2.5%, which is excellent, as a real airline is in the region of 1.5%.


Exactly! I'm not too sure why Yuxi thinks it's good to boast about a 30% profit margin, this just highlights how unrealistic AE is.

#13
Stevphfeniey

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Mine's at about 13%, which is the highest I've ever gotten I think

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#14
violetQueen

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My profit margins generally hover around 8.5-10.5% I've only had more than that when I fly low-co carriers which get 30%... my highest was 30.57% for Futura in the year 2000 in RDelta when it was a pure LCC. Aer Eireann currently has 10.4% which I see as realistic considering BA boasted a 10% profit margin in 2008.


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#15
Yuxi

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Exactly! I'm not too sure why Yuxi thinks it's good to boast about a 30% profit margin, this just highlights how unrealistic AE is.


This is not a discussion about realism. It's a game, and the default ranking happens to be valuation. So I can boast if I damn want to XP :P

#16
Pineair

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This is not a discussion about realism. It's a game, and the default ranking happens to be valuation. So I can boast if I damn want to XP :P


Well said.......coming up to four complete years in S1 and running at between 20-21%. The most unrealistic part of the game is how, unless based in a major country, or Europe, there is a lack of competition on international routes. That is down to player choice.

#17
Delta-Northwest

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If you want 100% realism and qaulity then your profit margin should be between 0.1-5% profit margin... a little unrealistic but quality 5%-11% , Low realistic airline/LCC 11%-25% , 25% and above is unrealistic airline :P

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#18
Sheepy

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Well, there are realistic and open worlds. :whistling:

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#19
FlyingDutchman7

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He, I've been at over 34% for a few months in R4. I don't fly any major routes though to avoid competition. (I don't want to get involved into any big competition as it's late in the game and I just started)




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