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Old 08-19-2025 | 01:35 PM
  #1944  
Hedley
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Originally Posted by DrJekyll MrHyde
So if capacity reduces and prices go up will this strategy still work? Will the basic economy seats (sold at a loss) fill up and will less buy up happen? If so, then basic economy (as they sell it today) is going away. These are fair questions.
The answer to your question is beyond my pay grade, and I honestly don’t know. What I suspect is that Kirby will continue his expansion and up gauging as deliveries permit. I think for the near term that he is probably comfortable with some overcapacity. It’s OK to carry some extra seats for now so that they are already in place to sell to the highest bidder when demand improves. Until then he’ll sell those extra seats cheap to claim any revenue that he can. I also suspect that he’s attempting to lure customers away from the ULCC’s and hopefully gain repeat customers due to the bigger route network, frequency, and the things like WiFi, drinks, and in seat entertainment that people view as “free” as opposed to baked into the higher price. I doubt that the basic economy model at the legacies will go away any time soon, but I do see it as a model that can be scaled up and down to meet current market forces.
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