A profitability analysis of low-cost long-haul flight operations

The profitable adaptation of the low-cost carrier model to long-haul flight operations is still subject to intensive discussion. We conduct a founded route profitability analysis for operational scenarios of low cost, long-haul services that includes a systematical evaluation of potential revenue sources. Our results suggest that regular low cost, long-haul operations are possible if the traditional full-service carrier product is effectively unbundled and suitable trunk routes can be identified.

► First distinct scenario setup and profitability calculation for long-haul LCC.
► LCC business model can be adapted successfully to long-haul operations.
► Effectively unbundling the FSC product is key success factor for long-haul LCC.
► 7100 passengers/week will generate positive profit contribution margin 2.