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Without necessarily agreeing with the GP, flights are an elastic good and have a notion of an optimum price - airlines may have continued to make greater profit
by ivanbakel 4y ago
Without necessarily agreeing with the GP, flights are an elastic good and have a notion of an optimum price - airlines may have continued to make greater profits by making tickets more accessible. Fuel is relatively inelastic, and may have less pressure to lower prices to increase profitability.
It's possible to explain price fluctuations without competition, and large parts of the public don't have a lot of faith in competition as a market force.
- nostrebored 4y agoAirlines certainly don’t make more profit with reduced ticket prices. If the oligopoly wanted to force consumers to pay premiums for tickets, they could, but the industry is largely competitive. The privatized airline industry is often a money pit. Even OTAs make a small fraction of their revenue from air travel.