pbarnette

Except there is zero evidence that DL has forgotten how to make a profit. They have load factors that are among the highest in the industry, coupled with a combination of cost structure and average fares that put their break-even loads among the lowest in the industry. There is a difference between hubris and confidence. When your decisions have shown themselves to deliver financial performance that is among the best-in-class, your confidence is well-earned.

Given that this thread is filled with a bunch of people complaining about a seat they have never seen and vowing to not pay for it, I think we can safely say that, even if DL forgets who makes them profitable, the average FTer doesn't qualify.

xliioper

And they have been doing the same thing with domestic F fares (non-D1 routes) that include lie-flat equipment for several years now There's a surcharge of $75 to $150 each way for every piece of D1 equipment from the 757 to the 747. None of this is really new folks.

" A SURCHARGE OF USD 100.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN AIRBUS INDUSTRIE A330-300 EQUIPMENT. AND - A SURCHARGE OF USD 100.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 777-200LR EQUIPMENT. AND - A SURCHARGE OF USD 100.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 767-400 EQUIPMENT. AND - A SURCHARGE OF USD 100.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 777 EQUIPMENT. AND - A SURCHARGE OF USD 100.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 767-300 WINGLETS EQUIPMENT. AND - A SURCHARGE OF USD 150.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 747-400 PASSENGER EQUIPMENT. AND - A SURCHARGE OF USD 75.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL IN BOEING 757-200 WINGLETS EQUIPMENT."

hockeyinsider

If Gary Leff's math was correct, a diamond-status passenger buying any airfare over $6818.18 is losing miles. See: http://viewfromthewing.boardingarea....nsive-tickets/.

StayingHomeIsBetter

And, there is zero evidence in my post supporting your assertion that I said DL has forgotten how to make a profit.

wco81

Do those include the bloggers who typically do these reviews?

BenA

Next step is clearly for them to try tacking these fees onto any passenger using a GUC on an A350 flight.

I agree wholeheartedly that the product is not worth the fee: on the initial routes, at least, the A350 represents a downgrade in onboard experience from the 747 it replaces.

motytrah

Captive Hubs for the Win.

pbarnette

Huh? You called it hubris and specifically said "they start to forget who makes them profitable... and why".

SNAGuy

Just tried to do a booking using miles for a D1 seat and the only amount to be collected in cash is the $46 or so in taxes. DL must be building the $500 each way surcharge into the # of miles need for the ticket.

Round trip 1/11 - 1/18 is pricing out to 480,000 miles but the first flight was initially pricing out RT at 350,000. It jumped to 480,000 when choosing the return flight.

pbarnette

AA and UA have captive hubs too. Ditto for many of the international carriers. I don't think that alone explains DL's financial success.

StayingHomeIsBetter

The original "rationale" IIRC, was DL insinuating that, while award ticket costs were going up, DL would make its higher elites "whole" by making miles easier to earn.

Then they clamped on the 75K limit.

The 75K limit is the great equalizer. A Silver and a DM earn the same number of RDMs on a $10,714 ticket.

StayingHomeIsBetter

It really should not be hard to understand.

Clearly, DL has not forgotten how to make a profit in the current context. The current context (reduced competition and improving economic conditions) allows them to maximize ticket prices and impose surcharges such as discussed here, without a lot of regard as to how "those who have made them profitable" up to this point feel about it.

The hubris is associated with the evident belief that they can continue to do this indefinitely, and won't have a greater need for formerly loyal customers when external factors next become less favorable.

AANYC1981

A350 "suites" look very tight to me

apodo77

I chuckle every time I see C+ mentioned as an upgrade.

pbarnette

You seem unfamiliar with the TPAC market (where these planes are headed) if you think there is "reduced competition". But thank you for confirming my point about FT's wholesale misunderstanding of that particular market.

The notion that you can charge a loyalty premium defies basic logic. Honestly, it is such a ridiculously silly idea that I struggle to understand how it has gained so much currency on FT.