editing routes to make more money

[iranair777]

Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down

[iranair777]

why no reply?

[pocketbookbrando]

Well picture how much money Microsoft would make if Windows cost $1000000000000000000000000000000000.  Nobody would buy it.  Essentially, when you have a monopoly on the route, you want to charge the price where margin demand = marginal cost.  Your ideal level of profit comes when you can raise the price to the highest level possible while still keeping your plane full.

Take a course on it if you're in high school or do some basic economics courses if you're done school.  Learning about pricing structures is interesting.

[Chavaquiah]

Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down

Costs up. Fuel, for instance.

[iranair777]

Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down

Costs up. Fuel, for instance.

i dont think you got my point

[Air Elbonia]

Why is it when we are increasing the price after flying the same route for a long time, do you stay with a loadfactor of 100%, but the profit goes down?? the profits suppose to go up because we are increasing the price, not go down

Costs up. Fuel, for instance.

i dont think you got my point

i altered where the "peak" is for food/drink, which may erode into the new profits a little.