Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Airlines’ new pricing strategy: buy one, get one free

Airlines’ new pricing strategy: buy one, get one free

Airlines give away seats as they try to stop the cash burn and make travelers feel comfortable flying again
Airlines are resorting to a new tactic in navigating the pandemic-inspired collapse in travel: They are giving seats away.

Alaska Air Group Inc. ALK 3.02% ran 48-hour sales in August and September, offering an entire three-seat row for the price of a single ticket. Europe’s biggest airline, budget carrier Ryanair Holdings RYAAY -1.33% PLC, offered 2-for-1 specials for flights through mid-December.

Southeast Asia’s AirAsia 5099 -0.90% brand earlier this year sold “unlimited passes,” allowing customers in some markets to travel as much as they wanted for a few months.

The deals can drum up demand and get travelers comfortable with flying again. They are also keeping at least some cash coming in the door, as airlines keep much of their fleets parked. Alaska Air usually runs 10 to 12 big promotions a year; it has recently been offering three a month.

Alaska Air was already keeping the middle seat open for social distancing. Its buy-one-get-one-free offer allows a pair of passengers traveling together to get their own row for the price of a single seat.

On days when the Seattle Seahawks play at home, the airline, which is based in that city, offers discounts of as much as 40% depending on how many touchdowns quarterback Russell Wilson makes. Overall during the third quarter, Alaska said ticket prices were down 17%.

“We’re seeing we’re able to stimulate demand in a way we weren’t sure we’d be able to,” said Natalie Bowman, managing director of marketing and advertising.

Carriers’ priority has been to drop prices low enough to fill the few planes they are still flying to a level at which they can simply break even, said Mark Simpson, an aviation analyst at Dublin-based Goodbody Stockbrokers.

Return trips on full-service airlines over Christmas from New York City to Nashville are going for as little as $71, instead of the usual $300 or so, according to Scott Keyes, founder of the price-tracking website Scott’s Cheap Flights. Round trips from Chicago to Las Vegas, which usually sell for $350, are selling for $81, he said.

“Airlines are having to do the unthinkable and slash fares on the peak travel dates,” Mr. Keyes said.

Executives at Southwest Airlines Co. LUV -0.10% and American Airlines Group Inc. AAL 1.08% said recently there are signs that fares may be climbing again, at least for last minute bookings on some flights.

Recent rises in Covid-19 infections in the U.S. and Europe could threaten that, though. European carriers have already started cutting back flying plans for the end of the year.

In the U.S., some airline executives have said they’ve seen some ebbs in demand but remain cautiously optimistic as Thanksgiving and Christmas bookings are holding up.

Discounters are better positioned to afford to give seats away, analysts said, because so much of their revenue comes from extra charges, like luggage fees and food. Buy-one-get-one-free seats can pay off if the extra passenger spends money on those extra services, even though the seat is free.

“It’s likely that the person who comes for free will drop some money on the flight,” said Geoffrey Weston, head of Bain & Co.’s EMEA aviation consultancy business.

Ryanair, Europe’s answer to Southwest, has rolled out a stream of specials during the coronavirus crisis, including its first-ever 2-for-1 deal in September on 1,600 routes through December. It has marketed several 24-hour, 50%-off tickets specials, and a 48-hour promotion in which it placed a million seats on sale for €5, equivalent to $5.80, each.

AirAsia’s “unlimited passes,” each selling for about $100, let fliers choose between domestic destinations served by its Thai and Malaysian airlines, and international destinations at its long-haul AirAsia X brand.

The airlines sold more than 200,000 passes, and 500,000 seats have been redeemed to date, said AirAsia.com Chief Executive Karen Chan. AirAsia expected passengers on average to redeem the passes between three and five times, though some passengers have used the pass more than 20 times.

Airlines have been finding other ways to keep fliers engaged with their brands while bringing in a little cash. Singapore Airlines Ltd. is converting parked A380 super jumbo jets into restaurants. Its first batch of lunch reservations, for two days of sittings, sold out in 30 minutes, prompting it to add two more days, as well as dinner, the airline said.

About half the seats in each 470-seater aircraft were made available to diners, to adhere to social-distancing measures. Costs range from about $40 for an economy seat and meal, $235 for business class and about $475 for a suite.

“It is engagement with our customers that remains our primary objective,” said Karl Schubert, a spokesman for Singapore Airlines. No further restaurant sittings are being planned at the moment, he said.

Taiwan’s EVA Air ways Corp. has created one-day “aviation camps” with three tracks: pilots, flight attendants and airline catering. Each camp includes guided tours of training and operations facilities, with participants able to fly a simulator, put out a fire in a mock cabin or learn how to prepare side dishes.

The camps are being held every weekend from mid-October through the end of January and range in price from about $100 to $350.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

Western Europe Records Hottest June on Record
0:00
0:00
Open
Western Europe Records Hottest June on Record
0:00
0:00
Close
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
×