I believe that DL and US both make huge money on these routes. Both have been immune from price competition on this route. I believe the walk-up fare now stands at just over $400 r/t.

If DL, UA or AA could get that fare on the SFO-LAX run, you'd see free drinks, more legroom, and nice snacks there too. Californians just won't pay that fare. (I think it stems from the old regulation days. California (and Texas) was one of the few markets where intra-state competition was fierce.

DL tried a "quality" product in the early nineties between SFO and LAX. 20 flights a day, with real snack service in F and Y. The "California Shuttle" product never evolved to the same level as the NE Shuttle. For a while, US, AA, UA, and DL all had 20+ flights on the route. I think AA, then DL, then US finally retreated, leaving UA to drive the service level into the ground (aka Shuttle by United).

With the walk-up fare at $250+ r/t, and AA building up with a traditional product, we may see some service competition yet.

BTW, IMHO that the DL Shuttle is the best airline for service in the US.