AA's LAX-JFK route one of the world's most profitable

Reply Subscribe

Thread Tools

Search this Thread

Jul 7, 2018, 2:07 pm

#16

FlyerTalker688786

Suspended

Join Date: Jul 2007

Posts: 4,477

Quote:

Originally Posted by DA201

That is extremely interesting, but I do not think it is accurate for todays AA. In 2006, LAA made $231 million and LUS made $304 million. In 2017, AA made $1.9 billion after taxes.

You are right about it. In 2006 AA used JFK as a hub, it's JFK LAX route allowed all sort of transit fares which effectively dragged down the yield. And it used B767-200. I remember fondly using a very cheap fare on the F class on JFK LAX as a segment of transit.

I think then it came A321 transcon and the option of utilise the route as a connection is restricted in fares. I bet this route now makes more money after AA took the steps above.

Jul 7, 2018, 2:23 pm

#17

Often1

Suspended

Join Date: Aug 2010

Location: DCA

Programs: UA US CO AA DL FL

Posts: 50,262

Quote:

Originally Posted by Uncle Nonny

Then came the baggage fees........and the windfall. Businesses with small margins need to be efficient. AA is far from it (as we all know from their IT infrastructure). They started with the fuel surcharges then added the baggage fees. Revenue from baggage fees have increased upwards of 30x in the last 20 years. There was also a time where it cost $25 to change your ticket. There's no reason to charge $200 for this nonsense. AA hasn't increased it's efficiency, they've increased their inane fees to cover their lack of efficiency. They operate like banks now.

You misunderstand the system. These fees and penalties are assessed in order to offer cheaper base tickets to customers who pressure carriers to keep fares low. More often than not, the customer is a business which is just fine eating a $200 change fee now and again if it can save a lot more than that on average.