Table

How Prices Plunge and Traffic Soars When Southwest Airlines Enters a Market

Burbank-Oakland

Passengers in 12 months before Southwest

246,555

Passengers in 12 months after Southwest

1,053,139

Increase in passengers

806,584

Average one-way fare before Southwest

$86.50

Average one-way fare after Southwest

$44.69

Decrease in one-way fares

-$41.81

Market revenue in 12 months before Southwest

$21,327,008

Market revenue in 12 months after Southwest

$47,064,782

Increase in market revenue

$25,737,774

Implied arc price elasticity of demand (EP)

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