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Industries · Aviation

Airlines, airports, and aircraft leasing

How airlines, airports, and aircraft lessors make money, how to use RASK, CASK, load factor, and yield, why hub carriers such as the Gulf airlines and low-cost carriers win in different ways, and how fuel hedging and slots shape airline cases.

40 min3 lessons Last reviewed
Start lesson 1 How airlines, airports, and lessors make money

Key takeaways

  • An airline sells seats on flights that cost almost the same to operate whether the plane is full or half empty.
  • Airlines measure everything per seat kilometre. If revenue per available seat kilometre (RASK) is above cost per available seat kilometre (CASK), the airline makes money; the gap is its unit profit.
  • Aviation is exposed to shocks it cannot control: fuel prices, conflicts, pandemics, and aircraft delivery delays.
By the end you will be able to
  • Explain network carriers, Gulf hub carriers, and low-cost carriers, and how airports and lessors earn money
  • Calculate ASK, RPK, load factor, yield, RASK, CASK, and the break-even load factor
  • Explain fuel hedging and airport slots in plain words
  • Describe the main airlines and lessors by region and the aviation trends of 2024 to 2026