Comment by tomhow
14 hours ago
They can't do this most of the time because for most of the year on most routes, supply outstrips demand (i.e., many/most flights on most airlines fly at least a little bit empty, often significantly empty – overall load factors are about 80-85%). They have to charge fares that customers will be willing to pay, even if that means losing money on a given flight. They can only charge profitable fares on the routes and times of year when demand surges (peak routes, holiday periods, major events). They have to keep their network capacity high enough to satisfy the peak demand, but for most of the year and most of the network, demand is lower, so they have to settle for break-even or loss-minimization. (For the record, I co-founded a flight search startup that became a fare optimization platform.)
Was that Flightfox? If so, I loved using it, helped me save so much money but also time :)
It sounds like there’s a problem with having too many flights that are barely full and hence unprofitable. AFAIK the federal gov spends significant money subsidising many “small airport” routes even if they’re barely used.
That’s just the nature of the beast. Airlines have to align large capital intensive assets with fluctuating passenger demand and fuel prices. And at congested airports the slots are also expensive assets that get auctioned off, and operate on a use it or lose it basis.
Spirit and the other LCC’s problem is that the legacy airlines are now offering a similar product in their basic economy that has less hassle, higher frequency, is sometimes eligible for earnings on their massive loyalty programs, etc.
The EAS Program (Essential Air Services) is the US Government program which subsidizes routes to small communities of you're curious.
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