FlyerTalk Forums - View Single Post - For what reason is O&D so profitable for airlines?
Old Dec 18, 2006 | 5:24 am
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CODCAIAH
 
Join Date: Oct 2006
Location: IAH
Programs: UA MileagePlus Silver
Posts: 15
For what reason is O&D so profitable for airlines?

Hello everyone,

I keep reading both here and on Airliners.net that in deciding where to put their hubs that airlines must look at O&D and not just geography -- that is to say, that AA's hub at ORD is profitable both because of it's "mid" location and b/c it's a huge O&D market, for example, where as CO's CLE or DL's CVG aren't as much.

So my question is: why is this true? What is it about O&D traffic that is so lucrative for airlines?
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