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by mrec
169 days ago
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This was the bit that caught my eye: > Blake’s pitch to airlines is enticing: “You’re already flying this route with a 300-seat plane where 80+ people in business class generate most of your profit. Give those passengers a supersonic plane, cut the flight time in half, and charge the same price.” And now most of the profit for the 300-seater is gone. What does this do to flight pricing for those who were flying economy? |
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Some airlines "take" the marginal economy seat loss on larger planes because those are the ones they can fill with business class seats and make an even larger profit.
Even then it's a complex math on whether economy is hurting those flights' profit margins since those people buy things in-flight such as Wi-Fi and extra bags. Base fare is not the only way airlines make money.