Maybe BP can chime in on what it "really" costs, but I doubt that people would change their plans if it cost 10-30% more on a flight if it got them higher on-time percentages and better service. People are still buying first-class tickets and they're still putting up with delays and cancellations like the rest of us, and the planes are full, so it's not just the low ticket price that's causing the problems.

People don't fly as much if the price doubles, but small percentage changes usually are in the noise. E.g. gasoline has gone up a lot but people aren't changing their driving habits much.

Hypothetical e.g. DCA to ATL on July 9, returning July 13: Round trip, nonstop, coach $275 to $464 per person, with most of them in the $275 - $295 per person range. Why can't they make money at that fare? Business/First Class is $658 to $768 for the same conditions. (All on Travelocity.) (No, I'm not going to be taking such a trip, it's just an example. :-) United's fares are nuts - the flights go through Chicago and they're $439 to $1064 for Coach!

I'm in whole-hearted agreement that management (or more often the corporation) usually eventually reaps what they sow when it comes to employee compensation and so forth.

Cheers,
Scott.