Originally Posted by
moondog
If the "front" is in such high demand, why is Delta selling those seats at such a big discount to 1. the competition; and 2. its other tpacs?
Do you realize that UA sells SFO-KIX for $7500 and SFO-PEK for $8500? (A bit different than SEA-TPE, a longer segment, @$2470.)
Where is SEA-TPE being sold for $2470 by Delta? The lowest I see is about $3930 RT, if they’re selling it for $2470, I need to get on it immediately, if you look at UA, they are also being undercut, with a one-stop SFO connection to TPE is also sold at the same exact price. On most other date pairs, Delta is selling it at comparable rates to the competition, which is around $5000 to $5500.
SFO-KIX/PEK is not the same market as SEA-TPE, I only brought it up indicate that load factors are not the only story for a route’s success. Keep in mind that yields are not purely point to point, it also factors in a ton of connecting traffic, a one-stop LAX-KIX is sold at $4700 via UA, they’re most definitely not getting $7500 for every seat.
If you look at BOS-TPE on Delta, it averages $6k, identical pricing to United, and a couple hundred behind EVA. A market like LAX-TPE, Delta is averaging comparable fares via their SEA connection at $5k to $5500 as well. I point this out to say that you can’t just look at fares from a single city pair and infer the yields. Delta connects tons of pax, clearly there is premium demand, otherwise they wouldn’t upgauge the cabin so significantly, as that capacity would be better used elsewhere.