Viscount724 From Switzerland, joined Oct 2006, 26382 posts, RR: 22
Reply 1, posted (1 year 9 months 4 weeks 1 day 1 hour ago) and read 2534 times:
It's all based on competition. There's far more competition on most international routes. Costs of shorthaul flying are also high as airport fees, taxes, ATC fees and all the other related charges make up a higher proportion of operating costs than a longhaul flight where the aircraft takes off and flies for 10 or 15 hours. Maintenance is also a bigger factor on shorthaul aircraft that may operate 8 or 10 sectors a day than a longhaul widebody that rarely makes more than 2 flights in 24 hours.
StarAC17 From Canada, joined Aug 2003, 3439 posts, RR: 9
Reply 2, posted (1 year 9 months 3 weeks 6 days 5 hours ago) and read 2261 times:
Quoting yegbey01 (Thread starter): How is it possible for airlines to generate good yields (I know there is cargo and business/first class) when at the same time, they get away with charging outrageous walk up fares domestically?
People are willing to pay those fares or else they would be a low lower.
There is a lot of hi-yielding traffic on many routes and the very price sensitive traveller they deem it too much. Airlines make money from the hi-yields and it serves them better to have a plane full of high yielding passengers than low-yield which increases their costs (ie fuel) and might generate a loss per passenger.
Just because a flight is full doesn't mean its making money where a flight with a load of 70% where a good chunk of pax are paying full fare Y and J tickets can make a lot.