inventory management

How airlines could make more money

Even as most flights are packed these days, some planes still take off with plenty of vacant seats, including in First and Business Class, effectively losing the airlines hundreds of thousands of dollars. Offering lower last-minute fares on undersold flights seems a logical solution, and carriers do it sometimes, but those attempts are utterly insufficient.

Let’s look at a recent international flight — most U.S. airlines give away free upgrades on domestic routes to fill their premium cabins. I picked a United Airlines flight on a route with traditionally heavy demand in Business Class: San Francisco to Sydney. As the above image shows, on June 19, that Boeing 747 left with 18 empty seats in Business Class, including on the upper deck.

The lowest Business Class fare on United on that route is — and has been for some time — about $6,400, which requires a 50-day advance purchase. If bought at least 21 days before departure, a ticket costs about $9,800, and about $12,300 at least three days in advance. The lowest last-minute fare is about $12,800. You do the math to figure out how much money United lost as a result of those 18 unsold seats…

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DOT should ban fictitious flights

Did you know that hundreds of fictitious flights inhabit airline schedules every day? They don’t exist in real life — just on paper. They are meant to make more money for the airlines by tricking customers and perverting a practice that was actually started to help travelers. In fact, they spell nothing but trouble for passengers.

Those fictitious flights are labeled “direct” by the airlines, which years ago decided to rewrite the dictionary and use that term for flights that weren’t nonstop but made at least one stop on the way to their destination. First, those flights were operated by the same aircraft, but later a “plane change” was introduced. The Department of Transportation has allowed the airlines to abuse the practice any way they like…

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