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Old 02-27-2006, 07:33 PM
  #9  
ryane946
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Originally Posted by Freightpuppy
Raise ticket prices! What a concept.
Actually it is quite a concept. You see, major airlines have been trying to raise ticket prices for a while now. I remember this happening quite a bit in 2003 with the Iraq war and SARS. One airline would add a $10 fuel surcharge, 2 or 3 majors would follow suit, yet the low cost carriers would keep their fares the same. The airlines would then back down to keep their costs in line.

Why would they back down? If you fly 1 million passengers, and add a $10 fuel surcharge, you have just earned $10 million dollars of revenue. But by raising fares $10, you have now lost 1/10 of your passengers (And it would probably be higher) so thats 100,000 X 200 a ticket = $20 million in lost revenue.

Believe me execs would love to raise ticket prices, but its the low cost carriers that are at fault!
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