No Wonder AA is so profitable [fully flex first class fare price]
#1
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No Wonder AA is so profitable [fully flex first class fare price]
Hows this for a One Way First Class Fare ORD-MCO on the website
Chicago to Orlando
1 Adult
Saturday January 7, 2017
Your Trip Price:
$6,441.10 USD
Same on Expedia
Chicago to Orlando
1 Adult
Saturday January 7, 2017
Your Trip Price:
$6,441.10 USD
Same on Expedia
#2
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#4
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Almost noone buys such a ticket. The standing joke is that the full F, J or Y fares only exist to calculate proportional discount or fare allowance for industry discount, corporate travel allowance, etc since noone ever buys one.
#5
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That is for a fully refundable ticket that allows travel on any route pretty much no matter how silly or transcontinental, 2 stopovers of any duration (up to the total ticket validity of a year), probably allows travel on other airlines, etc, etc. It's like the maximum hotel rate written on the hotel room door, actual rates are always lower.
Almost noone buys such a ticket. The standing joke is that the full F, J or Y fares only exist to calculate proportional discount or fare allowance for industry discount, corporate travel allowance, etc since noone ever buys one.
Almost noone buys such a ticket. The standing joke is that the full F, J or Y fares only exist to calculate proportional discount or fare allowance for industry discount, corporate travel allowance, etc since noone ever buys one.
#6
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This fare in particular is outrageous considering that it exceeds the full fare F rate of markets such as JFK-LAX in 3 class F. However, it isn't surprising considering the poor quality of analysts AA hires... I have seen too many cases now of domestic flights operated by 737s having a J fare of nearly $10,000 while the full refundable F far loaded for the flight is only $1,000, seriously J class on a domestic 2-class flight?!?!?!?!
#9
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It's hard to be profitable when the revenue line is $0. No one buys this fare.
OP doesn't seem to understand the difference between price, revenue, and profit.
OP doesn't seem to understand the difference between price, revenue, and profit.
#11
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I wouldn't say excellent, but definitely better than UA's for sure... I don't know if you remember Smisek's statement last year in which he admitted that UA had not been as profitable as its competitors due to inaccurate forecasts (done by a huge team of RM underachievers, haha)--that alone should have gotten him fired even before the corruption scandal.
Typically, excellence in RM is reflected not only through consistent high yields without killing load factors, but also, in terms of final inventory allocation needed to fill the analyst's assigned flights--an analyst with exceptional forecasting skills would be able to close one bucket without ever having to reopen it and thereby fill the flight with higher buckets. However, too often, I see AA's analysts being too aggressive then panicking at the last minute and giving the flight away at the lowest buckets.
Typically, excellence in RM is reflected not only through consistent high yields without killing load factors, but also, in terms of final inventory allocation needed to fill the analyst's assigned flights--an analyst with exceptional forecasting skills would be able to close one bucket without ever having to reopen it and thereby fill the flight with higher buckets. However, too often, I see AA's analysts being too aggressive then panicking at the last minute and giving the flight away at the lowest buckets.
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