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Old 08-31-2022 | 06:20 AM
  #190  
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Margaritaville
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Originally Posted by Mesabah
Those were times of peak ticket prices. This is a sobering look at the trend of airfare not keeping pace with inflation, aka the Southwest effect.
https://www.bts.gov/content/national...ge-fare-series
This is what a lot of guys miss. I'm a big advocate of getting all we as an industry can, but a $400 ticket in 1985 should be $970 today. But what does that same city pair cost today? $400. There's a lot of reasons for that, airline revenue from tickets hasn't kept pace with inflation. Airlines however have broadly diversified their revenue stream from FF programs, credit cards, ancillaries, etc, and that revenue definitely needs to be captured. The problem is that when pilots demand a raise based on inflation, management will always point to the deflationary ticket prices and cry poor. The key is to capture that additional revenue. You guys profit sharing is still industry leading and a lot more pilot groups should model it to capture that revenue into pilot pay. Pilot unions would be wise to stop tying pay rates to aircraft revenue generated and go after the diverse revenue streams, as airlines keep looking more and more like banks and marketing/leasing firms.
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