Originally Posted by
Bucking Bar
I just don't understand how airlines are failing to have positive cash flow with such high load factors. The model is truly broken if airlines can not make cash flow with cheap fuel and full airplanes.
I think the marketing gurus are still convinced that we need to keep our planes full no matter how little we charge. If the planes are packed then we simply aren't charging enough.
It could be related to past marketing strategies of building brand loyalty. With a few exceptions, the only loyalty is to the cheapest price!