How Airlines Are Generating Revenue on Flights That Will Never Take Off


Skift Take

U.S airlines are selling a lot of flights they have no intention of operating. Consumers should beware.

U.S. leisure travelers often buy airfare months ahead of departure, betting they can score a deal with shrewd advance planning. But in these atypical times, that may not be the best strategy — provided they want to fly what they bought. That's because many airlines have not yet decided what they're going to fly more than a month or two in advance. With Covid-19 significantly depressing demand for air travel — yes, even despite slight recent improvement — airlines are desperate to have the right number of seats for passengers who show up, and they're waiting until much later than usual to make cancelations. Typically, a major airline might lock schedules 120 days in advance, but many now push significant changes 30 to 60 days in advance. Some even make operational cancelations as soon as a few days before departure, wrecking travel plans at the last last minute. Airlines are waiting longer than usual to set schedules for several reasons. Perhaps most importantly, while airlines usually rely on sophisticated computer systems to guess how many people will book and fly, the platforms never have seen a global pandemic, so they can’t make accurate predictions on demand. By selling everything, airlines generate real-time data about who wants to travel, and when. Revenue is also a key concern. By listing more flights for sale, airlines can sell more tickets, getting cash in the door. In some instances, carriers technically owe customers refunds when they make substantial changes, but in recent months, carriers have become stingier with giving them. In many cases now, the airline will either rebook the passenger, or provide a travel voucher, ensuring the revenue remains. In selling so many flights that probably won't fly, "We wanted to create as much selling opportunities as possible coming out of a