Did you not see where they are coming from? Portland, Oregon. Can you imagine car rental, gas, hotels, meals on the road for a round trip flight?
I would trade 5 days on the road round trip, with that airfare any day.
Kind reminds you of the Griswold family, huh
Sure, I am . . .I'm completely realistic, I know what things cost; gas, groceries, taxes, oil, etc . . .it is unrealistic that airlines price gauge, but they aren't the only ones, I live in a very high taxed State . . .everything has gone up in price, but, if you watch the airline pricing, you will see them go up and down, then go way up, then come down . . .its a bunch of bull . . .just like when a hurricane is predicted, what happens at the gas station before the hurricane even happens? YUP, prices go up . . .I'd be happier if the airlines would come out with a set price and leave it like that . . .that way you know ok, I'm paying 275, 375, 475 pp and that's it . . .instead of . . oh hey, it's Tuesday oh look prices are down 30 one way . . . oh hey it's Friday, prices are up 50 one way . . .
So, IMHO, I'm more than realistic, just playing the air game like everyone else trying to get the best price . . .and glad I only have to purchase 2 tickets . . .
With respect, I'm not sure the dynamics of the airline industry can be fully understood without a deep dive of all the variables involved, and insinuating the airline industry is purposely gouging their customers is fairly disingenuous.
Prices fluctuate to accommodate vacation travelers (such as yourself) with the lowest fare possible, while still being able to afford the flight. Usually, this means business travelers take the largest price hit. To facilitate this, airlines determine how many seats they can sell below margin, at margin, and above margin to still make the trip break even in costs. In the end, it is very very thin. See below a link to a recent report on airline profitability.
No consumer HAS to fly. They can have any expectation of value that they want (or price point). They don't have to consider what it costs the airline to operate...it's ultimately irrelevant. They have to consider what they can afford, and what they find reasonable.
If the consumer can't find fare at the price they want, they make other choices.
This is true, to a point. We are exiting a pretty severe price war between Southwest airlines and the legacy carriers. During the war, prices were excessively low, even below sustainability in many cases. Unfortunately during this time, the American public's perception of airfares were lowered to levels far lower than the airlines can afford. Now that this is normalizing again, airfares are beginning to get to the point they should be. Have you noticed Southwest's prices equating to the legacy carriers?
Also keep in mind, current airfares are equivalent (or less than) those 20-30 years ago, unlike most other service and commodities. In addition, salaries are higher, which in general permit a much larger portion of the American public to experience air travel.
If the airline can't operate at a margin where they can meet most customers expectation of cost...then they can't/shouldn't operate. It's that simple.
And yes, I know full well what that would mean.
I disagree, and feel this is also disingenuous. First, the airline (like all businesses) only needs to meet the expectation of the owners.
In addition, unlike the infrequent travelers who fill the bulk of the aircraft economy seats, the airlines are sustained by business travel, who are willing to pay the higher rates to get their staff to the meeting/client. Why should American business suffer because Joe America can't afford (or doesn't want to afford) the additional $200 to take his family to Disney World at the time Joe wants to go? This dynamic is also why airlines cater to their frequent fliers and why threats of "never flying that airline again" by a standard passenger usually holds no weight to the bottom line.
Here is a report that was released two days ago (Thurs, Aug 29) regarding the profitability of US airlines:
http://atwonline.com/airline-financ...ID=darren@frequentlyflying.com&YM_MID=1336380
The 10 largest US airlines incurred a $1.07 billion net loss in the first half operating on a net negative profit margin of 1.5%, deteriorating from a 0.4% negative margin in the 2011 first half, according to Airlines for America (A4A).
...Excluding American Airlines, which is operating under Chapter 11 protection (ATW Daily News, Aug. 28), US airlines earned $835 million in net income in the first half, A4A said.
As katie said, margins are very thin,
US airlines earned just $0.77 per enplanement in 2011...
“When we say razor-thin margins, I think it’s fair to characterize $0.77 as razor thin,” Heimlich said. “Taxes are in the ballpark of $25 per passenger.”
Remember, previously bundled fees (baggage, food, etc) are not taxed as airfare now that they have been broken out, which helps the airlines a lot, while keeping the actual charges to passengers relatively the same.
$.077 times 400 passengers = $308 profit per flight. If oil, labor, or other variable increase slightly, many airlines could end up like Direct Air, Eastern, Pan Am, or TWA. This is especially true of Southwest, as they have very labor-friendly agreements, which may not be sustainable in the long-term.