The Real Moneymakers for Airlines

Posted in In the Air

Have you ever thought about how airlines actually make money? Bag fees, on-board meals, priority access — those are the easy ones. But what about the actual seat price? Does economy class make economic sense? I’m not an economist, so I can’t answer any of your questions. Luckily, there’s a video for that. A video that I found fascinating from Wendover Productions, which actually has a bunch of great explainer videos on their YouTube page. For now, let’s focus on the Economics of Airline Classes:

 

“Everyone in economy is just there to fill the plane.” Wow. That’s bleak. Remember that the next time you fly: even though it may have been a struggle to afford those $300 tickets, you’re still just a blip to the airlines.

Main photo: Attribution Some rights reserved by yfinancecanada

Comments

  1. This is all BS. Why are there 0 profitable all J airlines and why are most of the world’s most profitable airlines all Economy (Ryanair, Easy Jet, Southwest, etc.)?

    This video is made only from the perspective of a legacy carrier focused purely on longhaul.

    • Fair points, but I think the video is focusing mainly on the revenue generated and not actual profitability of the business itself.

Leave a Reply

Your email address will not be published.