Hacker News new | ask | show | jobs
by Stevvo 2240 days ago
Low cost airlines like frontier usually need at-least 85% occupancy to remain profitable. I don't see any good alternative. But with the WHO recommendation of maintaining 2 meters social distancing, it's unclear if this is even helpful.
2 comments

I keep hearing this, but 85% occupancy isn't some magic number. If occupancy is 66% instead, they can put their prices up 30% and realise the same revenue. Prices fluctuate way more than that anyway and oil prices (the biggest marginal cost) are at an all time low.

Airlines are in trouble because they can't run as many flights and they have significant fixed costs: leasing planes, servicing debt, payroll costs. Not because the flights they do run will be less full.

You assume that they'd get 66% occupancy if they raised their rates by 30%.

Additionally, I don't think you understand how airlines buy gas. This will help: https://oilprice.com/Energy/Energy-General/Why-The-Oil-Price...

The WHO used to recommend 1 meter and in Australia it's still 1.5 meters. These are just guidelines. In the end, a little distance reduces the chance of transmission and more distance reduces it more. Droplet transmission can occur at much larger distances than 2 meters, it just becomes exceedingly unlikely, much like it becomes more unlikely at 2 meters versus 1 meter.