barracuda93

I cannot argue on numbers here since I do not have the data (and no time/desire to try dig it out), so let me assume your calculations are correct for the sake of simplicity. If so, then it would still be better for an airline to do things differently. Negative image also has financial costs, which you neglect in your analysis. And CX likely does create a negative impression here (regardless of marginal costs being negligible or substantial). As someone already noted, upgrading at the gate would solve the problem (if needed, they can be pre-assigned in advance, but without letting passengers know). Customers will be happy, airline won't incur extra costs.