FlyerTalk Forums - View Single Post - Availability of Business or First Class Awards
Old Jan 29, 2019, 1:27 am
  #26  
GrayAnderson
 
Join Date: Jan 2014
Programs: Amtrak Guest Rewards (SE), Virgin America Elevate, Hyatt Gold Passport (Platinum), VIA Preference
Posts: 3,134
Originally Posted by Flying for Fun
I have always wondered if that holds true. Do the $ they get from partners really offset the real costs of an amenity kit, pajamas, Krug & Caviar?

Of all the F awards I have flown, I have yet to be on a flight where occupancy has been more than 50%.

James
Probably. The incremental cost of adding a passenger in a premium cabin is probably a couple hundred dollars. If there's a cost of 1cpm, that probably gets you to break-even or even a small profit on that seat. The key is that it does this without lowering the "headline price" on what is often a very expensive ticket (e.g. $10-20k for a super-long-haul F seat).
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