Quote:
Originally Posted by tonyw  I realize I am not typical but there are a lot of people like me. And I think it'd be smart for airlines to go after folks like me who aren't willing to waste my vacation time sitting in an airport so we can save $10 each way. |
They did. It's called the RJ.
Just playing around with the numbers, AA would've had to generate another $50 round trip in revenue per available seat mile. With a load factor of 79% that's $63
round trip per person carried. Doesn't sound like much.
Keep in mind that's assuming the same exact amount of people would've chosen AA at that new price point. Knowing how elastic ticket prices are, that doesn't seem safe to assume, but we will.
In addition, it's also a lot when you consider the
round trip average ticket cost on AA during the quarter was $339, so to break even last quarter they would've had to increase ticket prices by 18.5% ($63/$339). That was with fuel at $2.73/gallon. It's now at $3.60ish.