Originally Posted by
yulred
Pretty sure UA recorded a 10%+ profit margin for 2015 (4.5bn on revenue of 36bn). Then it announced 10-across 777s. Cut it however you want, they aren't using that 10% margin to give back 10% legroom. Or even 3% (1"). It's all being booked as profit, and now they're reducing seat width by what...5%?
Also, if AC is announcing 10 across 777, then UA has to announce 10 across 777 otherwise it loses fare wise. And since customers are cheap/tight with their money, if AC charges $300, and UA charges $350 with 9 across, what do you think customers are going to pick? I'm seriously asking here.
Also, based on your theory, why doesn't an airline just charge $400 for a 25" pitch?
I'm seriously asking. Why would that not work? (there is an answer in my head)