the deal wrote:@Mwanahisa lemme take you to school...if an airline with 100 seats flies a distance of 1000 km the ASK are 10000 if 60 passengers,km travelled is 60000 therefore PLF is 0.6 so PLF has nothing to with revenue but utilisation of capacity.
@the deal, I am not sure who of us needs to go to school. You are stating the obvious in terms of capacity utilisation.
I am actually not too concerned about the revenue and nowhere have I stated that in my post above.
My main issue is with regard to operating profits. If KQ flies planes carrying only 60.5% of the passenger capacity, that translates to lower operating profits, as opposed to, if it were, say 70%. The main way to offset this would be by charging higher fares per passenger/Kg ferried. Another might be if the USD has appreciated significantly against the Kshs hence fares increasing in Shilling terms.
Has KQ increased the average fares on African routes over the last 6 months relative to 2009-10? If so, then of course operating profits from that sector could be higher, than last year.
Note that in my post, I indicated that I was just lowering my expectations. I did not say that I expect lower profits. I know that they will be great relative to H1 2009-10, which were abysmal.