Originally Posted by
3Cforme
You're kidding, right? Comrade? Comrade?
Capitalism allows enthusiastic investors to demonstrate belief in a business plan by funding it. There's heavy institutional ownership of U.S. airlines and Honeywell, GE, UTX... at this point. These investors are not naive nor uninformed.
U.S. airlines have been making pretty good money for the last five years. Margins aren't uniform but decently-run carriers are surely covering their cost of capital. That is one definition of financial sustainability.
Fewer flights/seats might make the (very few) capacity-constrained U.S. airports more operationally efficient. The other 400 airports with scheduled passenger service don't really have a problem. Fewer flights/seats would surely drive up prices. Why do prices need to be higher when carriers are making good profits?
Well certainly airlines could go back to 32 inch Y pitch seating, meals in Y on flights over 3 hours +, 2 free checked bags, etc and raise fares to make up the difference. But then demand would likely fall. Airlines would be forced to cut capacity and routes, park a/c and layoff staff including FAs. So those angry FAs would be even more angry since they no longer had a paycheck. For those that can afford higher fares or more likely has an employer that would pay the higher fares the good ole days are desirable.