Originally Posted by
3Cforme
The fact that AA uses the alleged last-minute-gouge model doesn't mean it's revenue-optimal
It works fine when the (business) economy in good.
It fails miserably when the economy is bad.
My gut tells me the airlines are not adaptable enough, which is part of the reason why their profitability swings so much through the cycle, and I think for the most part, ends in the red on balance.