Earlier quoted context omitted.
> This meant it became profitable (i.e., above the marginal costs of the flights) to fly passenger aircraft purely for the belly-hold freight. That's not the usual definition of "profitable". As you say, they're turning a gross profit (if we treat aircraft leasing costs etc. as fixed, which over a short timeframe they are), but it's not enough to cover their fixed costs, so grandparent is correct that they are not (n…
Is there a single word for "it's more profitable to do this thing, rather than the other thing, or nothing"? I think that's what this counts as. I think this is in the same category of decision as retailers selling old stock at a loss, because that's better than not selling it. A large portion of the modern economy is run by spreadsheets, and crunching the numbers on what the "most-profitable" thing to do often leads…
In the long run, you can't ignore the fixed costs forever and you eventually just leave the market altogether.