The "PricePoint"
Flights are Full and generally oversold. This is due to (Partially) overpromoted and unrealistically low fare structure. It isn't unusual for a full A/C to lose money, after buybacks and Fuel cushion. The goal, as I see it is to raise fares to the point that "tickets sold reduction" is balanced by gross revenue. The off set is not easy to calculate, but the loss in numbers will most likely be in the area of customers who are flying "only" because it's Cheap. A friend Flew 757 coach roundtrip SMF to Philly for 190 Dollars (plus taxes) last week on Legacy. That's like buying a pint for a quarter. Lower load, better service, higher fare, the Old way. This can't continue.