For $39, Frontier Air Will Let Passengers Keep Their Distance

Re:For $39, Frontier Air Will Let Passengers Keep Their Dist... by dmurray on Tuesday May 05, 2020 @05:24AM (#23078085)

I keep hearing this, but 85% occupancy isn't some magic number. If occupancy is 66% instead, they can put their prices up 30% and realise the same revenue. Prices fluctuate way more than that anyway and oil prices (the biggest marginal cost) are at an all time low.

Airlines are in trouble because they can't run as many flights and they have significant fixed costs: leasing planes, servicing debt, payroll costs. Not because the flights they do run will be less full.

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Re:For $39, Frontier Air Will Let Passengers Keep Their Dist... by CubsFan1060 on Tuesday May 05, 2020 @10:56AM (#23080680)

You assume that they'd get 66% occupancy if they raised their rates by 30%.

Additionally, I don't think you understand how airlines buy gas. This will help: https://oilprice.com/Energy/Energy-General/Why-The-Oil-Price...

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