|Quoting mulletman101 (Thread starter):|
Can anyone provide any advice as to why there would be so much of a difference? would this be a route they make high profits on, and others there is little or no margin?
Please note that the price charged on any route is not directly related to any cost basis.
The price charged is according to what the market will bear. That is how a free market economy works.
If a route has low costs and high prices leading to a large profit, then other airlines will start flying the route. Other airlines flying the route will increase the quantity of seats supplied thereby decreasing the price of the tickets through competition. This is repeated between all point on an airlines routemap.
This is why an oversupply of carriers (like USA legacy carriers) leads to consistant losses across the industry and calls for consolidation. It is also why the Chapter 11 system in the USA has exacerbated the legacy airline oversupply problem.