how the hell aircraft rentals make their money? So what are the profit margins in aircraft rental industry?
Very little. Most FBOs (fixed base operators) survive on fuel sales and income from flying lessons. I bought my plane from the flight school where I trained, when they went out of business. They only offered flight training and plane rentals (no fuel sales). They had two 152s and two older 172s. Even though the each plane was used on average 300-400 hrs per year, they still could not survive.