...and the hits keep on coming

[cfii2007]

I was thinking re-regulation......the airlines keep losing as money as they make.

 

[kellwolf]

Spillage to what airlines?? There have been quite a few that have folded...and with practically everybody running high loads.....not everyone is going to run and fly Southwest.

Yeah, if EVERY flight is oversold at that time period, you won't get spillage. But those are pretty small odds in places like MEM. For example, you wanna go from MEM-IAH, and NWA has the cheapest price. However, they're oversold on the A320 going to IAH at 1:30 pm. CAL has an ERJ going to IAH at about the same time, but it costs about $40 more. Traveller wants to leave at that time, so they opt to pay the extra $40 rather than wait 4 hours for the 5:30 flight that still has 10 seats. Viola. Spillage.

 

[wheelsup]

UAL reported decreased load factor with a higher yields (ticket prices) recently. Increasing fares has a sharp and drastic effect on load factors.