Originally Posted by
ATOBTTR
You are correct that airline pricing isn't tied to the cost to operate a flight but I think MSPeconomist was saying that it's more complex once you factor in an entire operational route network that includes connections and how connections factor into t revenue for a given flight.
I hear you. But the statement I replied to said that fares on DL would be lower than UA due to being able to carry cargo. That’s simply not true because DL is going to maximize revenue. Prices charged for pax and cargo are independent of each other.
However, total revenue determine route profitability. Route profitability is one factor in determining whether they are willing to take a loss on one side or the other, and/or whether to continue the flight at all.