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
If the seat is empty they earn nothing. Better to make 20% of your ticket cost than 0%.
If they cancel the plane, there is a lot of costs involved, including refunds, extra tickets and hotel costs with that as well. Often it is cheaper to just fly a half empty plane than to cancel the flight entirely.
There are also all the other expenses they can tack on, baggage fees, drinks, food, etc.
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