How do airlines determine revenue from flight/city?
How do airlines determine the revenue generated per flight from a specific destination? Ive read numerous threads where people mention that a specific city is no longer profitable for an airline. But, how is this calculated? Since, pax are traveling on a variety of different fares from award tix to full-fare international Y and C/F tix, it seems difficult to break apart. Is there a specific formula per segment that determines the profitability to the airline per segment? Do award tickets and non rev travel affect the mix at all?