Originally Posted by
Stayontarget
I would argue the profit margins are better at the legacies currently because they have a premium product that they can charge more per seat for. You can only charge so much for a redeye seat to CLE but a first class seat to Europe will command a premium currently. Not exactly an apples to apples comparison on business models when looking at profit margins.
Most people are upgraded to first class. They don’t purchase that seat. It’s a reward for loyalty. That’s where the profit comes in. Repeat customers.