RyeFly From United States of America, joined Jun 2000, 1383 posts, RR: 0 Posted (12 years 8 months 3 weeks 5 days 11 hours ago) and read 704 times:
I read that Midway Airlines is offering a special $9 one-way fare to LGA on Labor Day, Sept 4th from RDU to celebrate their expansion to nine daily roundtrips to the airport. WOW! How could this be? You will end up paying more for parking then for your trip. How do airlines make money on this kind of thing?
Lowfareair From , joined Dec 1969, posts, RR: Reply 1, posted (12 years 8 months 3 weeks 5 days 11 hours ago) and read 655 times:
There are restrictions, like it's limited to 6 flights, for this weekend only, must leave Sat., and come back Tues., so you have a one-day advance purchase. And I think that it's available to the 6 flights they currently have, and they are probably 80-90% full already.
Matt D From United States of America, joined Nov 1999, 9502 posts, RR: 51 Reply 2, posted (12 years 8 months 3 weeks 5 days 11 hours ago) and read 649 times:
Well to answer your question:
THEY DON'T.
Promos like that are geared just to get people into their airplanes and to sample their service. It is a gamble that at least some of these people who pay $9 will pay full fares later on.
Besides, take a crash course in Yield Management.
Just because SOME seats will be sold for $9 doesn't mean that ALL of them will be.
JI won't lose as much money as you might think on those flights.
USAirwys4Lyfe From , joined Dec 1969, posts, RR: Reply 3, posted (12 years 8 months 3 weeks 5 days 11 hours ago) and read 645 times:
Yeah, there was a brief article in the Wilmington Morning Star about the cheap fare. Its just a promo fare to advertise their new service. They are most likely losing money on the $9 fare, but will probably sell out all of the flights.
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