Originally Posted by
fastair
Nomalize that for AA, which I believe reduced service 2.6% vs UA which increased service (only a tiny bit .1%). It is easy to get RASM gains when you reduce service, more difficult when you add service. Simple laws of supply/demand. Reduce supply for same demand, and people pay more. Increase supply with same demand, people pay less.
Demand in't constant. Given the different routes each airline flies, demand variations based on time aren't the same. Similarly, even across the same airline it's a combination of flights being removed and added - and demand varies by route.
Last edited by okrogius; Jul 11, 2012 at 1:19 am