The WSJ recently presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C. The article quoted analysts saying that United should...

It is not advisable for United Airlines to stop operating the San Francisco-Washington routes. One reason is that since 1978, when the airline industry underwent deregulation, "restrictions on the routes that airlines might run and on the fees, they charged have been eliminated." The majority of airlines have adopted a hub-and-spoke route arrangement. Additionally, they had the freedom to set their own prices in order to remain profitable and competitive. One of the most significant innovations was the introduction of a hub, which serves as a transfer or centre airport for passengers to reach their final destination. A hub is utilised by one or more aeroplanes to concentrate passengers’ traffic & flight operations at a particular airport. Planes travel along spokes to reach hubs.” When taking a connecting flight, passengers prefer the amenities offered by the hub operation, such as simpler and more...