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Assuming airlines are trying to maximize their bottom lines, if they want to capitalize on this spike in demand to offset the lower demand that resulted from th
by jfornear 16y ago
Assuming airlines are trying to maximize their bottom lines, if they want to capitalize on this spike in demand to offset the lower demand that resulted from the flight restrictions, they might be wanting to slowly fill up flights by gradually lowering higher prices.
The idea would be to only have a few empty seats. If the flights are full, their prices might be too low. Eventually everything will return to historical equilibrium as stranded passengers exit the market.
Altruistic airlines might go out of their way to get stranded passengers back to their homes, which could build customer loyalty and long-run revenues, however.
(This is just all wild speculation.)
- jrockway 16y agoYeah, but people have already paid for the tickets, and the airline is obliged to transport them. They are already weeks late on their obligation, which doesn't make them look good. Using this time to play pricing games ("ah, those stranded travelers already paid us, we'll transport them whenever") is going to subject the airlines to the attention of government regulators, which is not something they enjoy. Presumably.