Continental: Fare Increase Actually Helps!

Despite Continental’s miserable earnings report yesterday, there was one positive tidbit:  the fare increases of the past week will lead to $80-90 million is additional revenue this year.  Imagine that:  if you raise prices, you get more money.  Fascinating how that works.  Every airline should plaster that story on the walls of their revenue management offices.  Raise fares good.  Lower fares bad. Yes yes, I know.  There is a point where raising fares will drive away business.  Understood.  But clearly we’re not at that point.

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