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Airlines have large fixed capital costs. The marginal profit of an individual ticket purchase is very high, certainly a lot higher than 5%.
by listenallyall 3y ago
Airlines have large fixed capital costs. The marginal profit of an individual ticket purchase is very high, certainly a lot higher than 5%.
- lotsofpulp 3y agoThat is true, but this also comes into play: > especially now that all the competition is minimal except on the most popular routes. I guess airlines are betting sufficient passengers have no better option, and I would bet that too. I cannot remember the last time I got to pick an airline without heavily inconveniencing myself and wasting tons of hours with extra stops. Even a busy airport like Newark, you are basically flying United for 90% of destinations if you want to get there in the shortest amount of time with the fewest stops.
- listenallyall 3y agoYou're generalizing to the overall population, but "tw04" already said he was leaving the airline, so I guess he's determined that alternatives do exist and aren't that inconvenient.