Originally Posted by
Often1
Loads are a terrible indicator, especially during holiday periods when people are purchasing the cheapest fares long in advance and burning redemptions to sit up front.
All that matters is PRASM and BA likely runs that on a daily basis. At that point, the question becomes where to find the aircraft, so the net revenue for the new frequency has to exceed that for some other route.
Indeed!
Any revenue manager worth his/her salt will have most of the planes leaving at 100% load (more like 90%+ in real life) by adjusting the prices such that demand matches the capacity.
The revenue (PRASM) that these flights commanded will determine whether capacity will be cut, maintained, or increased.
And if capacity is increased, the revenue manager better get those new planes up to 100% load as fast as possible.