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

0:00
0:00
Close
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
×