A Lesson in Strategic Pricing from Airlines: Limiting Market Capacity. “Almost all airlines are currently showing a discipline in their capacity planning that was unimaginable before the pandemic. For a long time, supply was pumped into the market at any cost, in the hope of being able to steal a few customers from the competition. There was a ruinous price war that pushed down ticket prices. That has changed. The European air traffic control authority Eurocontrol recorded a total of 25,569 flights in Europe from January to early December 2022. That was only 83.1 percent of the level in 2019. A rather tight supply ensures high prices and thus the yield of the airlines.” – “High demand, low capacities” (Industry Outlook Series – Part 3: Airlines) – Aviation is considered crisis-sensitive. All the more astonishing that the worldwide airline association expects black figures for all regions. And: 2023 could be the year of Lufthansa.”, Handelsblatt, December 29, 2022, page 26, No. 252
approach strategic pricing with a changed mindset and better assess the contribution of professional pricing to results.
