Originally Posted by
Raffles
There is some confusion here about marginal cost.
If I, as Gold, book a £100 BA ticket on a flight which would not otherwise be full, in return for fast track and a cheap plate of lounge food, this is a huge financial win for BA.
It is a bigger win for BA than me spending £5k on a Club long haul seat on a flight which easily sells out.
If you don’t understand why, stop posting and start studying.
I’m no expert and I have never worked in business, but as I understand it marginal cost is how much extra cost an an airline would incur by adding an extra person to a not full flight - I.e food and drink, extra fuel, extra CC if it took the pax load over a certain amount. Likely to be negligible but if it was £50 and you paid £100 then it’s a 100% profit. Have I got this right?