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The economics of one low-cost flight
The prompt
An illustrative low-cost airline flies an Airbus A320 with 180 seats on a 1,000 km route. On one flight it carries 153 passengers. The average fare is USD 85 and each passenger spends USD 20 on extras. The airline's CASK is 8 US cents. What are the load factor, RASK, yield, profit on the flight, and the break-even load factor?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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