Originally Posted by
dynamiteReady
But I did wonder if the above reasoning makes sense, or if anyone has a better idea of how much airlines makes from customer fares...
Some years back there was a news segment that examined the profit for a NYC-LAX flight. I think it was a 767 flown by AA. From what I remember, despite a high load factor, the flight only cleared a profit of around $300. All the advance purchase inexpensive fares and frequent flyer upgrades canceled out the expensive last minute fares. I suspect the video is up on YouTube.