Lufthansa sues a man because he missed his flight

Define “win” here, though. As noted above, they may get their money in court and lose significantly more money than than from the bad PR.

Edit: they do have a feedback form.

https://www.lufthansa.com/ae/en/feedback

Airlines, like economists, often fail to understand that most human beings believe the price is related to cost rather than supply and demand.

In the end, this will probably be resolved by increasing the fares to the lower demand cities to prevent this behaviour. Fewer people will be able to afford to fly and the airlines will also make less money, which an economist will say is a lowering of overall welfare.

But once again, economists fail to understand that we don’t care that much about what actually happens - how it feels and the narrative it tells is far more important. Businessmen who fail to understand that truth risk our well-deserved wrath.

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If increasing the fares to lower demand cities results in fewer people flying and lower airline profits, wouldn’t the sensible behavior (from an economic standpoint) for the airlines be to continue the current practices and discourage hidden city ticketing to the extent that they can?

Not if it enrages the general populace. Of course companies often try to hide the tactics that enrage customers, but once they’re exposed they usually are wise enough to settle for “second best”.

Demanding customers see things like an economist rarely pays off.

Pedantry. Guilty as charged…

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