Originally Posted by
Globaliser
You're missing the point. If the overall cost of travel is the same on BA as on other airlines, regardless of the split between "base fare" and YQ, then the high level of YQ is unlikely to be contributing very much to BA's better financial performance (if such it is).
Suppose everything is equal, I still believe the YQ scheme could in theory boost BA's financial performance. The more redemption BA members do, the more likely BA could have better profit per seats mile. This has been proved by AA. American Airlines last year had a bad quarter (Q2 or Q3, needs to go back to check). Doug Parker, the AA CEO blames the system integration which caused the award programme's inability to issue as many as award seats compare with previous quarters. This is well documented in AA's earning call transcripts. And remember that AA does not impose YQ itself.
BA being the master in YQ collection, its art in inflate such price would no doubt be more profitable than AA. I would not be surprised that the YQ scheme BA is mastered in would contribute partially to its profit. Again, notice how I used the word partially.