Originally Posted by
MSPeconomist
Maximizing revenue from a route isn't the same as maximizing its profitability. Network effects also need to be considered--you can't evaluate routes on a stand-alone basis.
Sooooo…. Profitability is revenue-cost, right? In the context of the post I responded to, please explain how fare pricing is related to cost of the product in a
significant way. (Incremental fuel cost, the meal and amenity kit, plus the boarding pass is negligible for each additional passenger once the plane and crew are committed to a flight).