AFJROTC Commercial and General Aviation Take Off Practice Exam

What flight capacity was needed to ensure a 12 percent return on flights?

1. 40 percent

2. 50 percent

3. 55 percent

4. 60 percent

The correct answer is: 55 percent

The need for a specific flight capacity to ensure a 12 percent return on flights relates to the fundamentals of break-even analysis and profitability within aviation economics. A capacity of 55 percent indicates that the airline or flight operator will fill more than half of its available seats, which is crucial for covering its fixed and variable costs while achieving the desired profit margin. When an airline operates at 55 percent capacity, it is likely generating enough revenue from ticket sales to not only cover operational costs but also to achieve that targeted return on investment. This threshold often reflects the balance point where the revenue generated exceeds the costs associated with providing the flight service. Therefore, aiming for this level of capacity aligns well with financial planning to secure profitability. In contrast, lower capacity figures might not provide sufficient revenue to meet the desired return on investment, as the airline would need more than just partial filling of seats to successfully achieve financial objectives. Thus, a 55 percent capacity is significant and practical in ensuring the financial viability of the operation while aiming for a 12 percent return.