4 ms·
it’s cute you think that’s going to show up in lower ticket costs instead of the company’s profit margin.
by karmajunkie 2mo ago
it’s cute you think that’s going to show up in lower ticket costs instead of the company’s profit margin.
- jrk 2mo agoCommercial air travel is extremely competitive and has very low margins.
- samplifier 2mo agoSounds like a race to the bottom. Mmm bad pun.
- articulatepang 2mo agoWe don't really have to guess: as jet engines became more fuel-efficient, inflation-adjusted prices for air tickets dropped. And as oil prices fluctuate, so do ticket prices. There's a bunch of noise in both these trends but the best explanation for them is that competition between airlines drives prices to roughly the cost of provision, of which 30% or so is fuel.