I’m not sure I understand that. Presumably you don’t mean cost to the passenger. I can fly this weekend for under £70, and next spring for under £30.
That’s right. It’s a little bit like the real meaning of ‘low cost airline’.
It doesn’t mean guaranteed low cost to the passenger; it simply means that the
airline’s costs are lower than might be the case for competitors.
It’s instructive to apply for a charter cost for a given route. This tends to take on all the actual costs for the particular rotation, plus a margin, of course.
By comparison, the headline ‘fare’ offered by many airlines is little more than a marketing hook.
In the current operating environment, there’s also the frantic need to get cash in, and then hang on to it either by restricting refunds or issuing vouchers, which is pushing fares down for flights that have only a vague possibility of operating.
More generically, for certain airline models, there are (for example) fast track security fees, lounge access commissions, boarding priority fees, seat selection fees, baggage fees, flight change fees, name change fees, on board sales revenues, accommodation commissions, car rental commissions and, to a far greater extent even than network airlines, no-shows and over sales.
For a number of new airlines, when you relate that revenue cocktail to very/artificially low finance costs; airport, local authority and government subsidy; limited employee rights and benefits, along with the generic environment of zero fuel duties, zero VAT etc., it’s possible to divine that revenues sometimes bear only scant relation to fares, and similarly to costs.
As an example, the likelihood of people in recent months having paid Ryanair (and their ilk) more in change fees than it would actually have cost to simply buy a new ticket on their revised dates is simply staggering.
So, in those scenarios, you’ve had people potentially paying up to EUR235 to change a flight which might have cost anything between EUR1 and EUR500 in the first place, to one which was then on sale for as little as EUR10.
Add that kind of thing up, and it happens to a lesser extent in normal times and is an inherent part of the business model, and a better idea of revenues is arrived at.
I don’t think that there’s a network railway operator in the world that ‘works’ revenues, let alone costs, in this way.