|Quoting faro (Reply 2):|
Funny though how everywhere on a.net people say that J/F is where carriers make the money
Well, it all depends - but looking at it in a long-term, more theoretical, economic equilibrium perspective, if it was the case that airlines always made more money in J than in Y per available sq metre of cabin floor (e.g. the fare multiple was always higher than the cost multiple), then we should see airlines taking out Y seats and installing more J untill we reached the equilibrium.
In practice though it is very much depending on the specific route, market, a/c available, competition etc., as oneskyjet also indicates. In some markets, surely, J is more profitable, in others probably not.
again: The last two winters they did CPH
with a 343 (46J, 35Y+, 186Y IIRC, something like that) - not an ideal a/c for the route at all, but you have to do with what you have; you don't get a tailored new a/cx everytime you start a new route. Now, this was, for all practical purposes, a charter service more than a scheduled service. CPH
in winter is 95 % leisure traffic or something like that, and the route is not longer than most pax will stick it out in Y and not pay Y+ or J. Result: An overbooked economy, and LOTS of free upgrades; I know form personal experience and experience from several friends who flew the route. In practice, this means that even though your published J fare might have been a factor 4 of Y (resembling cost differences) (it actually was), realized J fare has probably been closer to a factor 2, if that. Bottom-line, this meant that the DXB
route made its money in the back of the cabin, not the front!
On the contrary, however, I think that a route like CPH
served with the same 343 might make good money in J, and a little less per sq metre in Y, because of more business traffic and longer distance.
I think it is difficult to draw the general conclusion that money is always made in front of the cabin - it all depends. Now, where I do think you can draw a general consluion, is that money is made on pax travelling nonstop. Customers pay more for onestop service - regardless of class of travel. Then it might be of course, that J-pax tend to take nonstop routings more than Y-pax, and this increases the J-fare more than the cost increase versus Y. But saying that money is always made in front of the cabin, merely based on the premium product up there, I don't buy - it does not make economic sense.