I’m considering getting one of those cheap tickets you see which is a direct round trip from MSP to Orlando for $60 including fees (it wasnt the date i wanted but it was cheap). How does that make economic sense for the airline? Sure the plane is making the trip anyway, but how can hauling my 200lbs of man meat 1500miles for $30 each direction not more than offset the fuel?
In: Economics
Think of it like an uber eats delivery driver. You have a big car that costs a lot of money to maintain, gas is expensive, and you have an employee (you) who gets paid for their time no matter what.
If you already have 10 orders going to the same apartment complex, adding an 11th one will almost be pure profit. You’re already filling the car with fuel, you’re already maintaining it, you’re already driving to those two locations.
Latest Answers