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  • spald_fr: 
  • Comments (390)
  [The load factor (percentage of available seats filled) increased to 84.2% from 82.6%.]
  
  You've got that right! I fly Delta internationally and domestically. For the past few years, every flight has been a sardine can, even in Business Class.

  Nov 05 12:08 PM | Link | Reply
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  • Tack: 
  • Comments (452)
  The big airlines, like so much they do, have it backwards, yet again. They think that increasing "load factors" by decreasing capacity is the road to better performance. Of course, it's not because in a huge fixed-cost business reducing volume reduces costs hardly at all, but does reduces revenues constantly.
  
  For a simplistic example, which of the following would you rather have?
  
  1) 1000 planes flying at 80% load factor and 100% of total costs
  
  or
  
  2) 800 planes flying at 85% load factor and 90% of total costs
  
  A quick calculation shows that while load factors increase, revenues decrease faster than cost cutting. The net result is even more losses.
  
  This all makes about as much sense as airlines making last-minute flyers pay punitive rates for seats. The intelligent course, naturally, would have seat prices fixed or actually reduce last-minute walk-ons, if empty seats were available.
  
  As can be seen rather clearly, airlines with more intelligent pricing models, like Southwest and Airtran, make money, while the "old guard" cannot find their way and constantly do things that alienate the public and are contrary to their health and survival.

  Nov 05 12:29 PM | Link | Reply