This is a great example of the purpose of the program. The cost for DL to fly this route is ~$250. DL is “losing “ money on your ticket. However, the pricing model in this case would place the marginal revenue over the marginal cost. This model is effective when demand for profitable tickets would not fill the plane. Therefore, you remain a valuable customer, especially if you are price sensitive and would not fly at all at a higher price. During the recession (pre-consolidation with hyper competitive LCCs) offering these low priced seats along with loyalty benefits was an effective business plan.

As the economy improves, demand will increase while DL appears to be keeping the supply nearly the same. This drives prices up along with the opportunity to maximize revenue. RM has models to optimize the revenue on any flight to include many sales below cost up to those seats costing 4-5 times the cost. One part of the model is the F monetization program. A last minute business flyer paying YBM tickets IMO should be given the opportunity to buy into F for a nominal cost. These are the profitable flyers whether loyal or not. Even if they are not a loyal flyer a good experience may turn one of these high revenue flyers into a loyal flyer.

It seems like the biggest complainers about the new business plan are the sLUT flyers while the biggest celebrators should be the DL shareholders. When DL is not able to sell the tickets at the asking price, then the upgrades will be available as they always have been. As the average ticket price grows it will start the next part of the business cycle- the new entrant .