jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

How Will Carriers Make Money On $300 SFO-LHR-SFO?

Fri Feb 24, 2006 2:50 pm

I get weekly travel specials, and right now UA, has a special for SFO-LHR-SFO for $297.00....

I know its not like this all year, and during the summer, flying to London is an arm and a leg.......but flying for only $297.00 roundtrip?? That's only $150.00 to fly 4664nm miles......

other carriers such as BA, VS, AA, and NW aren't charing too much more either...

bit dubious as to how some of these carriers will survive with prices such as these..


1 adult = $ 297.00
Taxes and Fees = $ 108.70
Service Fee = $ 5.00

Total Price = $ 410.70
"Up the Irons!"
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

RE: How Will Carriers Make Money On $300 SFO-LHR-SFO?

Fri Feb 24, 2006 2:58 pm

It's better than flying empty seats, no? Fares to Europe always plunge around this time of year. NW was offering $159++ round-trip to CDG from some western cities last week.
International Homo of Mystery
 
m404
Posts: 1875
Joined: Tue Nov 25, 2003 4:43 pm

RE: How Will Carriers Make Money On $300 SFO-LHR-SFO?

Fri Feb 24, 2006 4:23 pm

It's only cheaper than empty if you have to ferry empty seats. Smaller aircraft with less seats but better economics are one possibility but chasing a losing market share is still a bad business model.

Of course the percentage of seats available at that price is key. If the flight is near full and these are simple top off fares then fine but these types are rarely advertised and usually offered at last minute. Say about 48 hours before departure. Fares like this offered far ahead of time may only allow someone to fly that might have paid more if it didn't exist.
Less sarcasm and more thought equal better understanding

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