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Old Oct 22, 2006 | 5:51 pm
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Pricing (not a rant)

okay so you have clicked on my thread and i promise this is not a pricing rant.

Basically, I am curious about the pricing mechanism regarding intl vs domestic flights. I keep hearing airlines complain about how unprofitable domestic operations are and how keen they are on intl. What i don't understand is why this so, if it is true.

I mean lets take a domestic flight eg PHL-DFW. Regular fares are around 300 . the distance is around 2800 miles for a RT. While a PHL-SIN is around 1000 and covers 20K miles. the cost per mile is definitely in favor of domestic. then there's the cost of food, in flight entertainment (however pathetic it may be on UA), hotel, food and other expenses for the crew, higher insurance rates for intl flights making it even more unfavorable. So what exactly am I missing in my analysis? Does intl F and C revenue really compensate for the above?
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