yegbey01
Topic Author
Posts: 1349
Joined: Wed Nov 05, 2003 11:04 am

International Airfares

Sun May 05, 2013 5:29 pm

So I have a question to the experts here....Why are international airfares much cheaper than domestic ones (based on actual miles flown) and in many cases, no minimum advance purchase is required?

You can always catch a transatlantic flight (or to India, Middle East) or Asia for very competitive rates last minute and the price may only be a fracture higher than those who booked 3 months ahead.

Compare that with a last minute trip from say, Wash to LA or Vancouver to Toronto.....

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?
 
Viscount724
Posts: 18971
Joined: Thu Oct 12, 2006 7:32 pm

RE: International Airfares

Sun May 05, 2013 10:35 pm

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
Posts: 3400
Joined: Thu Aug 07, 2003 11:54 am

RE: International Airfares

Tue May 07, 2013 6:11 pm

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.
Engineers Rule The World!!!!!
 
sw733
Posts: 5302
Joined: Wed Feb 25, 2004 6:19 am

RE: International Airfares

Tue May 07, 2013 6:32 pm

Quoting yegbey01 (Thread starter):
So I have a question to the experts here....Why are international airfares much cheaper than domestic ones (based on actual miles flown)

As mentioned, one big factor is fixed costs. They're there whether you are flying 200 miles or 2000 miles or 10000 miles.

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