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Southwest Introducing Dynamic Pricing for Early Bird Check-in: Here’s Your Strategy

southwest plane
Aug 18 2018

Southwest Airlines is apparently going to vary the price of Early Bird check-in by route instead of charging a flat $15. Some routes will go up to $25 starting August 29th, and this will be based on two things: the length of the route (so how much getting a more desirable seat is likely to matter to you) and demand for Early Bird Check-in on the route (how many people are already buying it).

This isn’t as big a deal as it seems, especially if you know how to play Southwest Airlines boarding strategically.

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Here’s How Much Airlines Made Off Their Frequent Flyer Programs So Far This Year

graph chart
Aug 13 2018

Frequent flyer programs create tremendous value for airlines. They’re highly profitable, and have been for years. When United filed for bankruptcy it was said to have to continue flying to support the underlying credit card business. The airline’s first call after seeing the judge each time was to Jamie Dimon.

The issuer of the United co-brand credit card provided debtor-in-possession financing to United, and co-led bankruptcy exit financing. As with other airlines, United received hundreds of millions of dollars in loans backed by future mileage sales to provide liquidity during the financial crisis.

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