Originally Posted by
Eric Stratton
capacity is not the problem there is over 80% load factors at most airlines right now. if capacity decreased at some airlines other airlines will fill in the gaps. think airtran, jetblue, southwest, etc.... capacity will continue to grow, it always has, even in the past when certaion airlines said there was tooo much capacity. the airlines that claim too much capacity just need to learn that when costs go up your product needs to go up as well.
Load Factors do not matter.
If tickets were free what do you think the load factors would be?
For every price point (including free) there are a finite number of passengers that will show up to fly from point A to B.
- Gas is not free.
- Jets are not free.
- Port authorities will not let you use their facilities for free.
- Gate agents, FAs, Mechanics will not work for free.
- Pilots (ok, they will work for free).
Point is, the costs that are not free have grown so large that unlike in the past, as you accurately describe where someone else fills in; Now they (all the airlines) are all saying capacity must come down. It's the only way for yield to go up to cover costs.