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
The sale of optional extras can also be a notable revenue source even if the base fare alone is sold at a loss or close to at cost. If you’re buying an airline ticket, the airline hopes that you will need to pay for at least one bag, or you might want to purchase in flight WiFi, or that you may pay extra for seat selection, or may consider purchasing drinks or snacks during the flight
Delta’s operations from MSP sometimes compete directly against a competitor ultra low cost airline (sun country), hence why a low cost basic economy ticket may make sense for them: they want to fight for that passenger who wants a cheap base ticket in hopes they can generate revenue from them through other parts of the experience
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