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Thread: Who are UA's "best customers?"
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Old Jan 31, 2020 | 12:42 pm
  #54  
JimInOhio
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Originally Posted by jsloan
They do not make money on most Y passengers individually. They do make money on Y passengers, in aggregate. This is exactly the same thing that I have been saying the entire time.

The question that prompted this discussion was whether or not a *G Y passenger is profitable. The answer is, individually, probably not. UA is betting that he can be replaced easily by another passenger without status.
I'm not an accountant but I think where you're going with this is the distinction between variable contribution and gross contribution. When I think of it this way, it seems to me your statement of individual vs aggregate is backward. Can you give an example of what you're saying?
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