Profit Margins in U.S. Domestic Airline Routes

Department of Economics

Florida International University

Working Paper 2125

November 2021

11200 SW 8th Street, Miami, Florida 33199

https://economics.fiu.edu/

Profit Margins in U.S.

Domestic Airline Routes

Hakan Yilmazkuday

Pro…t Margins in U.S. Domestic Airline Routes



Hakan Yilmazkuday

November 11, 2021

Abstract

This paper estimates pro…t margins in the U.S. airline industry at the domestic

route level. The dynamic estimation methodology used not only is robust to any simul-

taneity/endogene ity bias by construction but also results in pro…t margin estimates that

are highly consistent with actual pro…t data from the U.S. airline industry. Estimated

annual pro…t margins have an average of about 13:3%, with a range between 2:7% and

42:9% across routes. A cross-route analysis further suggests that annual pro…t margins

increase with the market share of the largest airline serving the route, whereas they

decrease with airfare. Important policy suggestions follow.

JEL Classi…cation: C32, L93

Key Words: Pro…t Margin; Price Elasticity; U.S. Domestic Routes.



The author would like to thank the editor, Eric Pe ls, and two anonymous referees for their helpful

comments and suggestions. The usual disclaimer applies.

Department of Economics, Florida International University, Miami, FL 33199, USA. Phone: 305-348-

2316. Fax: 305-348-1524. E-mail: hyilmazk@…u.edu

1 Introduction

One-way airfare between Seattle, WA and Yakima, WA has been about $103, while it has

been about $402 between New York City, NY and Monterey, CA, on average between 2000-

2017.

Although these airfares might have been determined by several market conditions,

which of these routes have higher pro…t margins?

Answering this question is important

not only for this particular route but also for any other one, because consumer welfare and

thus optimal policy against excessive usage of market power by airlines highly depend on

the answer (e.g., see Brons, Pels, Nijkamp, and Rietveld (2002)). Airlines also manage their

‡eet and determine their investment plans to expand or shrink their facilities based on this

critical information (e.g., see Valdes (2015)); moreover, even airplane designs are achieved

based on these details (e.g., see Carson, Cenesizoglu, and Parker (2011)).

This paper estimates pro…t margins for individual domestic routes within the U.S. by

using quarterly data between 2000 and 2017. As the data set used is at the domestic-route

level, (i) estimated pro…t margins represent the average measures across airlines of that route,

although multiple airlines may be serving in a particular route, and (ii) the information is

averaged out regarding direct versus indirect ‡ights. The estimation is achieved by using

implications of the Lerner markup rule in a structural vector autoregression (SVAR) model.

This corresponds to estimating the inverse price elasticity of demand for each route in a

dynamic framework as it represents the pro…t margin in the Lerner markup rule, which

is consistent with studies such as by Brons, Pels, Nijkamp, and Rietveld (2002) who have

suggested using time series data in the estimation of elasticity measures.

The source for these values is described in the data section.

The answer for the particular route is given in the conclusion section of this paper.

The estimation of pro…t margins for each route is achieved by using the textbook de…nition

of the inverse price elasticity of demand, which is the percentage change in airfare divided

by the percentage change in the number of passengers. Since pro…t maximization is achieved

by choosing the number of passengers according to the Lerner markup rule, in the context of

the SVAR model, pro…t margins are estimated as the cumulative response of airfares divided

by the cumulative response of passenger numbers, both following a shock on the number

of passengers after controlling for changes in airline costs. This approach is robust to any

simultaneity/endogeneity bias by construction (due to allowing for changes in both airfare

and passenger numb ers, following a structural shock), which is the main contribution of the

paper.

Regarding the level of aggregation, this paper uses time-series data for each U.S. domestic

route individually. This is similar to earlier studies such as by Abrahams (1983), Jorge-

Calderón (1997), Abate (2016) and Hakim and Merkert (2019) who have also used route-level

data to estimate pro…t margins or price elasticity measures. Exceptions are studies such as by

Mumbower, Garrow, and Higgins (2014) who have used data from a single airline, JetBlue,

or by Morlotti, Cattaneo, Malighetti, and Redondi (2017) who have used data from another

single airline, easyJet; these studies have estimated higher price elasticity measures with

respect to other studies using route-level data, consistent with previous research suggesting

that higher aggregation (e.g., route-level data) results in lower price elasticity measures.

As SVAR estimations are achieved at the route level, price elasticity measures and pro…t

margins are estimated for each route individually. This results in having only one estimate

for each route representing the quarterly sample period between 2000 and 2017. These

route-speci…c estimates are further used in a secondary analysis to investigate whether the

heterogeneity across routes can be explained by other factors such as airfares (as in Fischer

and Kamerschen (2003)), lower distance (as in Kutlu and Sickles (2017)) or higher airline

market shares (as in Bailey, Graham, Graham, and Kaplan (1985), Hurdle, Johnson, Joskow,

Werden, and Williams (1989), Berry (1990), Berry (1992), Borenstein (1990), Borenstein

(1991), Brueckner, Dyer, and Spiller (1992), or Evans, Kessides, et al. (1993)). The results of

this secondary analysis are further used to have certain policy suggestions regarding consumer

welfare and airline pro…ts.

Overall, this paper contributes to the literature through the estimation methodology that

takes into account the dynamic relationship between airline costs, airfares, and the number of

passengers. To our knowledge, this is the …rst paper using such an approach that has several

bene…ts. Speci…cally, the SVAR model used for the estimation considers the simultaneous

relationship between airline costs, airfares, and the number of passengers by using quarterly

data at the domestic-route level so that any endogeneity b etween these variables are controlled

for in a dynamic way by construction.

Another contribution of the paper is through considering the reaction of variables to

each other through impulse response functions. This contribution due to using a time-series

approach (of SVAR) results in estimating a causal relationship between percentage changes

in airfares and percentage changes in passenger numbers, where airline costs are controlled

for. This is di¤erent from the existing literature that ignores the causality between these

variables due to using cross-sectional regressions. This contribution results in estimating

annual pro…t margins that are highly similar to those implied by actual pro…t data obtained

from the U.S. domestic airline industry.

This paper also contributes by estimating the pro…t margin and price elasticity of demand

for each U.S. domestic route individually. These route-speci…c estimates (representing the

overall sample period) that are obtained by the SVAR model are further used in a secondary

cross-sectional analysis to explain why certain routes have higher or lower pro…t margins or

price elasticity measures. Based on this contribution, important policy implications follow

both at the national and the domestic-route levels (as discussed in details at the end of this

paper).

The rest of the paper is organized as follows. The next section motivates the SVAR

model by using the implications of the Lerner markup rule. Section 3 introduces the data

set used, where descriptive statistics are discussed. Section 4 reveals the estimation results

based on the SVAR model, while Section 5 depicts the results of a secondary investigation

based on the comparison across routes. Section 6 concludes with discussing the corresponding

policy implications. Route-speci…c and city-speci…c empirical results are given in the Online

Appendix.

2 Empirical Methodology

The estimation is achieved by using implications of the Lerner markup rule in a SVAR model.

Our objective is to estimate pro…t margins in the U.S. domestic airline market by focusing

on individual routes across U.S. cities based on pricing-to-market. For the market between

any two U.S. cities, pro…t margins are measured by using implications of the Lerner markup

rule. The motivation behind using the Lerner markup rule is that when the (inverse) price

elasticity of market demand is known, the corresponding pro…t margins are can be obtained

by using the implications of the Lerner markup rule.

2.1 The Model

The main objective in this subsection is to have a theoretical motivation to estimate the (in-

verse) price elasticity of market demand at the domestic-route level so that the corresponding

pro…t margins can be obtained. In formal terms, for the market between any two U.S. cities,

i and j, the pro…t function 

is given by:



= P

)  Q

 C

) (1)

where P

) represents the inverse demand function of the market between U.S. cities i

and j, with P

representing the corresponding airfare depending on the number of passengers

in this route, and C

) represents total cost of this market, also depending on Q

Pro…t maximization based on pricing-to-market is achieved by choosing route-speci…c

, which results in the Lerner markup rule of

MC

= "

, where MC

)

represents marginal costs, and "

= 

)

represents the inverse price elasticity of

market demand that satis…es 0 < "

< 1 (which ensures that the market continues operating).

In this framework, "

further corresponds to the pro…t margin due to

MC

= "

. Finally,

the price elasticity of demand 

is given by 

2.2 Estimation

Based on the Lerner markup rule, the pricing (and thus supply) decision of the airline in-

dustry represented by the equilibrium airfare depends on airline costs, whereas the demand

coming from passengers depends on the airfare (determined by airline costs). These de-

tails can be captured in a dynamic framework by using implications of the SVAR model of

ijt

= (c

ijt

; p

ijt

; q

ijt

)

, where c

ijt

is the percentage change in airline costs, p

ijt

is the

percentage change in airfares, and q

ijt

is the percentage change in number of passengers,

all for the market between U.S. cities i and j. Since the model considers percentage changes

of variables over time, any route-speci…c characteristic (including route-speci…c taxes, route-

speci…c airport chargers, route-speci…c service quality, route-speci…c hubs) that are constant

over time are controlled for by construction.

For the market between U.S. cities i and j, the estimation is achieved by using the SVAR

model given by:

ijo

ijt

= a

k=1

ijk

ijtk

+ u

ijt

(2)

where u

ijt

is the vector of serially and mutually uncorrelated structural innovations. For

estimation purposes, the model is expressed in reduced form as follows:

ijt

= b

k=1

ijk

ijtk

+ e

ijt

(3)

where b

= A

1

ijo

, B

ijk

= A

1

ijo

ijk

for all k, and it is postulated that the structural impact

multiplier matrix A

1

ijo

has a recursive structure such that the reduced form errors e

ijt

can be

decomposed according to e

ijt

= A

1

ijo

ijt

, where the sizes of shocks are standardized to unity

(i.e., the identi…cation is by triangular factorization).

The recursive structure imposed on A

1

ijo

requires an ordering of the variables used in the

estimation for which we use the ordering already given in z

ijt

above as it is consistent with the

Lerner markup rule. In particular, (i) airline costs are taken as given by the airline market

and thus they do not respond to shocks in airfares or passenger numbers, neither initially nor

in the long-run, where the latter is achieved by using block exogeneity; (ii) airfares respond

to airline costs initially due to the airline market using the Lerner markup rule for pricing;

and (iii) numb er of passengers responds to both airfares and airline costs due to market

conditions.

The estimation is achieved for individual U.S. domestic routes (each represented by a

city pair ij) using a Bayesian approach with independent normal-Wishart priors. This cor-

responds to generating posterior draws for the structural model parameters by transforming

each reduced-form posterior draw. In particular, for each draw of the covariance matrix from

its posterior distribution, the corresponding posterior draw for A

1

ijo

is constructed by using by

triangular factorization so that the sizes of shocks are standardized to unity. In the Bayesian

framework, a total of 2; 000 samples are drawn, where a burn-in sample of 1; 000 draws is dis-

carded. The remaining 1; 000 draws are used to determine the structural impulse responses

that are necessary for the estimation of pro…t margins and price elasticity measures.

2.3 Implications for Pro…t Margins

When variables are represented in percentage changes as in this paper, the inverse price

elasticity of demand "

, which also represents the pro…t margin for the market between

U.S. cities i and j, can be rewritten as percentage changes in airfares divided by percentage

changes in number of passengers:

Implica tions of the Lerner Markup Rule

z }| {

 MC

= 

)

= 

p

ijt

q

ijt

| {z }

Cumulative Responses in SVAR

(4)

where percentage changes can be measured following the e¤ects of a change in the number

of passengers, because pro…ts are maximized in airline markets by choosing the number of

passengers as in Equation 1. In terms of the SVAR model, this corresponds to the ratio of

the cumulative impulse response of airfares divided by the cumulative impulse response of

passenger numbers, both following a shock on the number of passengers.

Since cumulative impulses can be calculated for any period after the shock, annual pro…t

margins "

’s for the city pair ij can be estimated in one year (i.e., four quarters) following

a shock on the number of passengers. This approach is robust to any simultaneity problem

between airfares and number of passengers due to allowing for changes in both airfare and

passenger numbers, following a structural shock. The estimated "

’s can further be used to

obtain the price elasticity of demand 

measures. In the Bayesian estimation, "

’s

and 

’s are calculated for each of the 1; 000 draws, and the draws that satisfy 0 < "

< 1

(to be consistent with the implications of the Lerner markup rule) are used to construct the

distribution of each estimate. While the median of each distribution is considered as the

corresponding Bayesian estimator, the 16th and 84th quantiles of distributions are used to

construct the 68% credible intervals.

3 Data Set

Data on airfare and number of passengers have been obtained from the U.S. Department of

Transportation (DOT) under the title of "Contiguous State City-Pair Markets That Average

At Least 10 Passengers Per Day." These consist of average one-way airfare and average one-

way daily number of passengers between any two cities within the U.S. with at least ten

passengers per day, where the direction of the route is not considered. A typical observation

is for the route between Albany, NY and Chicago, IL that has an average (over our sample

period) one-way airfare of $205 and an average one-way daily passenger number of 312. Due

to our data covering U.S. domestic routes (rather than speci…c airlines), the estimated results

will represent average values across airlines in particular routes. This data set also includes

the distance between the cities covered as well as the market share of the largest airline in

that market.

Airline costs are measured by "Passenger Airline Cost Index (PACI)" obtained from

Airlines for America.

This index measures the cost of inputs for passenger airlines (e.g.,

labor, fuel, food, aircraft ownership, airport landing fees, insurance, utilities, interest) to

the provision of air service over time. The vast majority of PACI is derived from quarterly

…nancial and operational information collected by DOT (principally, Form 41 reports); it

re‡ects all U.S. passenger airlines …ling complete reports.

Since our estimation methodology requires continuous data during the sample period, we

focus on 2; 992 routes (each represented by a city pair) for which such data are available.

Such an approach is also consistent with the restriction of 0 < "

< 1 which ensures that

Their web page is http://airlines.org/.

Further technical details about PACI can be found at https://www.airlines.org/dataset/a4a-quarterly-

passenger-airline-cost-index-u-s-passenger-airlines.

the market continuous op erating regarding its pro…tability. The quarterly sample period

between 2000Q1 and 2017Q4 has been chosen to be consistent with data availability. In the

estimation, all variables are represented as demeaned annual percentage changes measured by

quarterly year-on-year log changes that are robust to any seasonality concern by construction.

The summary of series that enter estimations is given in Figure 1, where the average air-

fare (across 2; 992 U.S. domestic routes) is highly correlated with airline costs in terms of their

annual percentage changes. When variation across routes is considered, the standard devia-

tion of airfares is highly correlated with that of passenger numbers across routes, suggesting

that route-speci…c dynamics are important to consider, as we achieve in this paper.

The average (over time) distributions of airfare, number of passengers, market share of

the largest airline, and distance are also given in Figure 1, and they are summarized in Table

1 across routes. As is evident, airfares have an average (across routes) of about $226 between

any two U.S. cities (on average over time), although they range between $96 (representing the

route between Greensboro/High Point, NC and Salt Lake City, UT) and $434 (representing

the route between Richmond, VA and Tampa, FL). Number of passengers have an average of

about 313, with a range between 16 (representing the route between Fargo, ND and Kansas

City, MO) and 19; 336 (representing the route between Los Angeles, CA and San Francisco,

CA).

4 Estimation Results

Individual estimates (2; 992 of them) are achieved for each U.S. domestic route in the sample.

Since pro…t margins and price elasticity measures can be estimated for any period following

a shock on the number of passengers (as shown in Equation 4), we obtain annual estimation

results as those obtained one year (four quarters) after the shock. Due to our data covering

U.S. domestic routes (rather than speci…c airlines), the estimated results represent average

values across airlines in particular routes. The following subsections reveal the details.

4.1 Pro…t Margin Estimates

Estimates of annual pro…t margins are summarized in Table 2 and Figure 2 in percentage

terms, while route-speci…c estimates are given in Online Appendix Table A.1. Pro…t margins

have an average of about 13:3%, with a range between 2:7% (for the route between San

Francisco, CA and St. Louis, MO) and 42:9% (for the route between Lexington, KY and

Orlando, FL) across routes.

The average (across routes) estimates of pro…t margins are in line with actual data sets

provided for the overall U.S. air transport sector. For example, according to Airlines for

America, the U.S. airline industry has pro…t margins ranging between 12:1% and 15:6%

between 2015 and 2017.

Likewise, according to IATA Industry Statistics, the airline industry

in North America has operating margins ranging between 6:8% and 14:4% between 2013 and

2017.

Similarly, according to Damodaran Online, the U.S. air transport sector has an annual

after-tax operating margin (corresponding to the pro…t margin in this paper) of about 7%

on average between 2000-2017 (i.e., the sample period in this paper).

Even though the average (across routes) pro…t margins in this paper representing the

U.S. domestic airline market are in line with the U.S. air transport sector data, they are

The web page of Airlines for America is http://airlines.org/.

The web page of IATA Industry Statistics is https://www.iata.org/.

The web page of Damodaran Online is http://pages.stern.nyu.edu/~adamodar/.

lower compared to the literature. For example, studies such as by Berry and Jia (2010)

have suggested pro…t margins for the U.S. airline industry ranging between 41% and 78%

across di¤erent model speci…cations. Since the results of this paper are consistent with the

actual pro…t data, the di¤erence between earlier studies and this paper can be attributed to

alternative estimation methodologies and sample p eriods.

4.2 Price-Elasticity Estimates

Price elasticity estimates are also summarized in Table 2 and Figure 2, while route-speci…c

estimates are given in the Online Appendix Table A.1. Price elasticity estimates have an

average (across routes) of about 9, with a range between 2:3 (for the route between Lexington,

KY and Orlando, FL) and 39:6 (for the route between San Francisco, CA and St. Louis,

MO).

Our price elasticity estimates, which are consistent with actual pro…t data due to their

implications for pro…t margins as discussed above, are nevertheless higher compared to the

existing literature. In their survey of studies, both Brons, Pels, Nijkamp, and Rietveld (2002)

and Gillen, Morrison, and Stewart (2003) have shown that price elasticity measures have an

average of about 1:1 across studies, with the highest value of 3:2; Berry and Jia (2010) have

suggested price elasticity measures ranging between 1:6 and 2; Chi and Baek (2012) have

estimated a long-run elasticity of about 5:6; Mumbower, Garrow, and Higgins (2014) have

estimated elasticities ranging between 1:3 and 2; and Kutlu and Sickles (2017) have estimated

elasticities ranging between 1:7 and 2:8.

Since the results of this paper are consistent with

Also see earlier studies such as by Brander and Zhang (1990), Brander and Zhang (1993) or Oum, Zhang,

and Zhang (1993) who have considered route-speci…c pro…t or elasticity measures in their investigations.

the actual pro…t data, once again, the di¤erence between earlier studies and this paper can

potentially be connected to alternative estimation methodologies and sample periods.

5 Distribution of Pro…t Margins across Routes

After having pro…t margin estimates for each route (within the U.S.) in our sample, following

studies such as by Borenstein (1989), Lijesen, Nijkamp, and Rietveld (2002), Fischer and

Kamerschen (2003) and Fageda, Jiménez, and Díaz (2012), we would like to know how much

they are a¤ected by certain route characteristics, such as average airfare, average number of

passengers, market share of the largest airline, or distance. Since city characteristics may

also have impacts on pro…t margins (e.g., due to higher/lower demand conditions or airport

costs, as in studies such as by Borenstein (1989), Dobruszkes, Lennert, and Van Hamme

(2011) or Fageda, Jiménez, and Díaz (2012)), we control for (and measure) city-speci…c

e¤ects. Accordingly, we regress pro…t margins in percentage terms (i.e., 100  "

) on log

average airfare, log average number of passengers, market share of the largest airline, and

log distance in di¤erent regression speci…cations by including city …xed e¤ects, since these

route characteristics may be correlated with each other. Therefore, our objective is mostly

to show how pro…t margins are correlated with any of these individual route characteristics,

after controlling for city characteristics.

Univariate regression results based on route characteristics are given in Table 3 for pro…t

margins, where Ordinary Least Squares (OLS) is used for cross-sectional estimations. As is

evident, after controlling for city …xed e¤ects, pro…t margins decrease with airfare and they

increase with market share, independent of the regression considered. Pro…t margins decrease

with the number of passengers when all variables are used as right-hand-side variables at the

same time, whereas they decrease with distance when only distance is considered as the right-

hand-side variable. Focusing on the signi…cant e¤ects, after controlling for only city …xed

e¤ects, doubling airfare across routes results in about 1:4% lower pro…t margins, doubling the

market share of the largest airline results in about 3:1% higher pro…t margins, and doubling

distance results in about 0:9% lower pro…t margins.

Compared to the existing literature, having negative e¤ects of average airfare on pro…t

margins is consistent with studies such as by Fischer and Kamerschen (2003), whereas having

negative e¤ects of distance on pro…t margins is consistent with studies such as by Kutlu

and Sickles (2017).

Similarly, having positive e¤ects of market share on pro…t margins is

consistent with studies such as by Bailey, Graham, Graham, and Kaplan (1985), Hurdle,

Johnson, Joskow, Werden, and Williams (1989), Berry (1990), Berry (1992), Borenstein

(1990), Borenstein (1991), Brueckner, Dyer, and Spiller (1992), or Evans, Kessides, et al.

(1993).

Nevertheless, focusing on univariate regressions can result in the omitted variable bias.

Accordingly, when all variables are included at the same time, the results are given in the last

column of Table 3. As is evident, after controlling for city …xed e¤ects and fo cusing on the

signi…cant e¤ects, doubling airfare across routes results in about 2:8% lower pro…t margins,

and doubling the market share of the largest airline results in about 2:7% higher pro…t

margins. These results are also supported by relatively high Rsquared values. However,

log distance becomes insigni…cant when all variables are included in the regression (as in

Studies such as by Brander and Zhang (1990) have shown how average costs decline with distance due

to certain …xed costs. When this observation is considered together with the results in this paper (showing

that pro…t margins decrease with distance), it is implied that demand is lower for routes with longer distance

measures.

studies such as by Brons, Pels, Nijkamp, and Rietveld (2002)), suggesting that it may be

correlated with (or the determinant of) log airfare.

We next investigate this possibility

further.

Speci…cally, while investigating the determinants of pro…t margins, airfares can be a¤ected

by distance, number of passengers or market share. To address this issue, an alternative set of

regressions is considered for robustness, this time by using Two-Stage Least Squares (TSLS)

to consider potential endogeneity concerns. The corresponding results are given in Table 4,

where, for further robustness, regressions (1) and (2) consider log distance as an instrument

for log airfare, and regression (3) considers log distance, log passenger and market share as

instruments for log airfare. As is evident, pro…t margins decrease with airfare, independent of

the regression speci…cation considered. Therefore, the results are robust to the consideration

of the relationship between airfare and other variables.

We also run separate regressions of pro…t margins in percentage terms only on city …xed

e¤ects to measure the contribution of city characteristics as in studies such as by Borenstein

(1989), Dobruszkes, Lennert, and Van Hamme (2011) or Fageda, Jiménez, and Díaz (2012).

Since city …xed e¤ects can be measured only in relative terms (across cities), we focus on

deviations from the average city …xed e¤ect. The corresponding results are given in the

Online Appendix Table A.2, where city …xed e¤ects on pro…t margins range between 31:8

and 32:2, suggesting that city characteristics are highly e¤ective in explaining cross-route

pro…t margin di¤erences; relatively high Rsquared values support these results.

This result is also consistent with the trade-o¤ between long-distance ‡ights being less substitutable (i.e.,

having higher pro…t margins) and requiring a larger share of a passenger’s budget (i.e., corresponding to a

higher price elasticity and thus having lower pro…t margins), where these two forces apparently cancel each

other out.

It is implied that ‡ying to/from a particular city may be more or less costly for passengers

with respect to other cities in terms of the pro…t margins paid. Based on the estimated city

…xed e¤ects in the Online Appendix Table A.2, top ten cities with the lowest and with the

highest pro…t margins are given in Table 5. As is evident, cities such as Albany, GA or

Atlantic City, NJ are the cities with lower pro…t margins, whereas cities such as Redding,

CA or Panama City, FL are those with higher pro…t margins, on average across routes.

6 Concluding Remarks and Policy Implications

Estimation of pro…t margins through price elasticity measures requires careful identi…cation

of shocks and their impact on prices and quantities. This paper has used a structural vector

autoregression model to identify shocks on the number of passengers and their impact on

airfares by using quarterly data on the U.S. domestic airline industry at the route level.

Estimation results have suggested higher measures of price elasticity of demand with respect

to the literature such that the U.S. domestic airline industry has an average annual pro…t

margin of about 13:3%, with a range between 2:7% and 42:9%. These average values are in

line with industry-level pro…t data from the U.S., supporting the estimation and identi…cation

methodology in this paper.

Going back to the question asked at the beginning of this paper, it turns out that the

route between Seattle, WA and Yakima, WA with an average airfare of $103 has experienced

annual pro…t margins of about 22:1%, while the route b etween New York City, NY and

Monterey, CA with an average airfare of $402 has experienced annual pro…t margins of

about 9:9%. Therefore, the higher airfare (with a distance of 2; 596 miles) has experienced

pro…t margins less than half of those experienced by the lower airfare (with a distance of

only 103 miles), suggesting that consumer welfare has been higher with the higher airfare (or

the longer distance). This result is not speci…c to this particular route; it has been shown

by considering all routes that higher pro…t margins are associated with lower airfares, higher

market shares or shorter distance measures. It is implied regarding consumer welfare that

consumers bene…t more from U.S. domestic routes with higher airfares, longer distances or

lower airline market shares.

Regarding airline pro…ts, it is implied that there are higher annual pro…t opportunities

in routes with lower airfares, higher airline market shares or shorter distances. City charac-

teristics have also shown to be important determinants of pro…t margins, where cities such

as Albany, GA or Atlantic City, NJ are the cities with lowest pro…t margins, whereas cities

such as Redding, CA or Panama City, FL are those with highest pro…t margins, on average

across routes. However, when annual pro…t margins have been regressed on all variables

at the same time to avoid any omitted variable bias, the coe¢ cient of distance becomes in-

signi…cant, consistent with the trade-o¤ between long-distance ‡ights being less substitutable

(i.e., having higher pro…t margins) and requiring a larger share of a passenger’s budget (i.e.,

corresponding to a higher price elasticity and thus having lower pro…t margins), where these

two forces apparently cancel each other out.

The results in this paper that correspond to higher measures of price elasticity of demand

(and thus lower pro…t margins) with respect to the literature have important policy impli-

cations. Speci…cally, if authorities impose regulations or taxes to avoid excessive usage of

market power by airlines, the results of this paper imply a higher response of passengers with

respect to the existing literature for the average domestic route, suggesting that aviation

policies would be more e¤ective in general. It is also implied that the burden of a potential

policy change would be shared between airlines and passengers, which is important from a

consumer welfare perspective.

Since pro…t margins of airlines increase (and thus measures of price elasticity of demand

decrease) with the market share and they decrease with airfare and the numb er of passengers

across domestic routes, there are also route-speci…c policy implications. In particular, any

aviation regulation or tax would be more e¤ective in domestic routes with higher airfares,

higher number of passengers or lower market shares. Therefore, aviation authorities can

focus more on these particular domestic routes if they would like to have e¤ective policies to

protect consumer welfare.

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Table 1 - Descriptive Statistics

Airfare ($) Passenger (#) Market Share (%) Distance

Mean 226 313 55 1; 066

Median 227 82 53 933

Minimum 96 16 24 94

Maximum 434 19; 336 100 2; 724

Std. Dev. 48 828 16 593

Notes: Airfares are in U.S. dollars. Passenger numbers are represented as average per day.

Market share represents the share of the largest airline in percentage terms . Distance

represents nonstop ‡ight distance in miles. Std. Dev. stands for standard d eviation.

Table 2 - Summary of Estimation Results

Pro…t Margin (%) Price Elasticity of Demand

Mean 13:264 9:009

Median 12:381 8:077

Minimum 2:722 2:333

Maximum 42:872 39:567

Standard Deviation 5:522 4:249

Notes: Values represent the distribution across routes. The values represent estimates

obtained one year after a shock on the number of passengers. City-pair speci…c estimation

results are given in the Online Appendix.

Table 3 - Cross-Route Estimation Results (OLS)

Dependent Variable: Pro…t Margins (%)

(1) (2) (3) (4) (5)

Log Airfare 1:440



2:823



(0:486) (0:940)

Log Passenger 0:185 1:226



(0:161) (0:252)

Market Share 3:133



2:725



(0:693) (0:957)

Log Distance 0:910



0:321

(0:172) (0:300)

City Fixed E¤ects YES YES YES YES YES

Sample Size 2992 2992 2992 2992 2992

Adj. RSquared 0:329 0:318 0:316 0:321 0:329

Notes: Standard e rrors are in parentheses.





and



represent signi…cance at the

10%, 5%,1% and 0.1% levels, respectively.

Table 4 - Cross-Route Estimation Results (TSLS)

Dependent Variable: Pro…t Margins (%)

(1) (2) (3)

Log Airfare 3:788



4:399



0:947

(0:723) (1:136) (0:566)

Log Passenger 1:529



(0:309)

Market Share 3:177



(0:774)

City Fixed E¤ects YES YES YES

Sample Size 2992 2992 2992

Notes: Standard e rrors are in parentheses.





and



represent

signi…cance at the 10%, 5%,1% and 0.1% le vels, respectively.

Regressions (1) and (2) instrument log airfare with log distance,

whereas regression (3) instruments log airfare with log distance, .

log passenger and market share

Table 5 - Top Ten Cities

Cities with Lowest Pro…t Margins Cities with Highest Pro…t Margins

Albany, GA Redding, CA

Atlantic City, NJ Panama City, FL

Albuquerque, NM Toledo, OH

Albany, NY Laredo, TX

Lawton/Fort Sill, OK Key West, FL

Amarillo, TX New Bern/Morehead/Beaufort, NC

Dothan, AL Sun Valley/Hailey/Ketchum, ID

Appleton, WI Wausau/Mosinee/Stevens Point, WI

Bismarck/Mandan, ND Gainesville, FL

Abilene, TX Walla Walla, WA

Notes: These lists are based on the city …xed e¤ects given in the Online Appendix Table A.2.

Figure 1 - Descriptive Statistics

2005 2010 2015

-20

-10

% Change in Airfare/Passengers

-50

% Change in Airline Costs

Average of Series across Routes

Airfare

Passengers

Airline Costs

2005 2010 2015

Standard Deviation of Airfares

Standard Deviation of Passengers

Variation across Routes

Airfare

Passengers

100 200 300 400 500

Average Airfare ($)

200

400

600

800

Number of Routes

Distribution of Average Airfares

2 4 6 8 10

Log Average Passengers

200

400

600

800

1000

Number of Routes

Distribution of Average Passengers

0.2 0.4 0.6 0.8 1

Share of Largest Airline

100

200

300

400

500

600

Number of Routes

Distribution of Average Market Shares

0 1000 2000 3000

Distance between Cities

100

200

300

400

500

600

Number of Routes

Distribution of Average Distances

Figure 2 - Summary of Estimation Results

0 20 40 60 80

Profit Margin (%)

100

200

300

400

500

600

700

800

900

1000

Number of Routes

Profit Margins

0 5 10 15 20 25 30

Elasticity

200

400

600

800

1000

1200

1400

Number of Routes

Price Elasticity

Origin City Destination City Median Lower Upper Median Lower Upper

Allentown/Bethlehem/Easton, PA Dallas/Fort Worth, TX 18.31 8.04 32.19 5.46 3.11 12.44

Allentown/Bethlehem/Easton, PA Atlanta, GA (Metropolitan Area) 13.39 5.80 24.98 7.47 4.00 17.23

Allentown/Bethlehem/Easton, PA Phoenix, AZ 18.50 6.84 32.30 5.41 3.10 14.61

Allentown/Bethlehem/Easton, PA Chicago, IL 24.11 9.89 39.45 4.15 2.53 10.11

Allentown/Bethlehem/Easton, PA Charlotte, NC 16.83 7.39 28.84 5.94 3.47 13.53

Allentown/Bethlehem/Easton, PA Houston, TX 20.03 9.01 34.56 4.99 2.89 11.10

Allentown/Bethlehem/Easton, PA Orlando, FL 23.76 11.03 38.33 4.21 2.61 9.07

Allentown/Bethlehem/Easton, PA Minneapolis/St. Paul, MN 19.67 10.55 30.35 5.08 3.29 9.48

Allentown/Bethlehem/Easton, PA Las Vegas, NV 21.17 9.61 36.37 4.72 2.75 10.41

Allentown/Bethlehem/Easton, PA Miami, FL (Metropolitan Area) 22.21 9.73 38.13 4.50 2.62 10.27

Allentown/Bethlehem/Easton, PA Los Angeles, CA (Metropolitan Area) 13.22 5.15 23.14 7.56 4.32 19.43

Allentown/Bethlehem/Easton, PA Tampa, FL (Metropolitan Area) 28.16 14.12 46.12 3.55 2.17 7.08

Abilene, TX Dallas/Fort Worth, TX 12.59 5.81 21.00 7.94 4.76 17.21

Albuquerque, NM Dallas/Fort Worth, TX 7.87 3.44 14.52 12.70 6.89 29.03

Albuquerque, NM Pittsburgh, PA 18.39 9.10 28.96 5.44 3.45 10.99

Albuquerque, NM Denver, CO 9.88 4.48 17.77 10.12 5.63 22.36

Albuquerque, NM Atlanta, GA (Metropolitan Area) 10.45 4.18 18.11 9.57 5.52 23.93

Albuquerque, NM Austin, TX 9.83 4.32 17.07 10.18 5.86 23.13

Albuquerque, NM Tucson, AZ 24.50 11.06 40.50 4.08 2.47 9.04

Albuquerque, NM Phoenix, AZ 13.68 5.67 23.86 7.31 4.19 17.64

Albuquerque, NM Hartford, CT 8.87 3.61 17.01 11.27 5.88 27.68

Albuquerque, NM Seattle, WA 5.32 2.31 10.47 18.79 9.55 43.22

Albuquerque, NM Birmingham, AL 14.12 6.40 25.78 7.08 3.88 15.64

Albuquerque, NM Cleveland, OH (Metropolitan Area) 9.07 3.82 18.37 11.03 5.44 26.16

Albuquerque, NM Nashville, TN 9.55 4.17 17.38 10.48 5.76 23.96

Albuquerque, NM Boise, ID 9.52 4.11 17.06 10.50 5.86 24.33

Albuquerque, NM Boston, MA (Metropolitan Area) 8.56 3.78 15.14 11.68 6.61 26.42

Albuquerque, NM Washington, DC (Metropolitan Area) 5.33 2.27 11.12 18.78 8.99 43.96

Albuquerque, NM Chicago, IL 6.50 2.46 12.42 15.37 8.05 40.71

Albuquerque, NM Charlotte, NC 14.89 7.03 24.11 6.71 4.15 14.22

Albuquerque, NM Columbus, OH 15.00 6.79 27.28 6.66 3.67 14.72

Albuquerque, NM St. Louis, MO 13.47 6.47 22.86 7.42 4.38 15.45

Albuquerque, NM Jacksonville, FL 16.27 6.54 27.31 6.15 3.66 15.29

Albuquerque, NM Dayton, OH 15.16 5.99 26.91 6.60 3.72 16.70

Albuquerque, NM Detroit, MI 10.86 4.23 18.69 9.21 5.35 23.67

Albuquerque, NM Houston, TX 9.51 3.92 19.55 10.52 5.11 25.48

Albuquerque, NM Orlando, FL 6.59 2.35 11.77 15.17 8.49 42.58

Albuquerque, NM Minneapolis/St. Paul, MN 9.46 4.14 15.79 10.57 6.33 24.18

Albuquerque, NM New York City, NY (Metropolitan Area) 8.89 3.90 15.72 11.25 6.36 25.65

Albuquerque, NM Spokane, WA 19.05 8.28 34.06 5.25 2.94 12.08

Albuquerque, NM Las Vegas, NV 10.05 4.29 18.49 9.95 5.41 23.33

Albuquerque, NM Indianapolis, IN 17.84 8.38 29.34 5.60 3.41 11.94

Albuquerque, NM San Francisco, CA (Metropolitan Area) 4.53 1.82 9.30 22.08 10.75 54.92

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Albuquerque, NM Miami, FL (Metropolitan Area) 7.84 3.05 13.51 12.76 7.40 32.79

Albuquerque, NM Los Angeles, CA (Metropolitan Area) 6.57 2.78 13.29 15.21 7.52 36.01

Albuquerque, NM Little Rock, AR 11.95 4.60 21.91 8.37 4.56 21.76

Albuquerque, NM Louisville, KY 10.72 4.65 20.25 9.33 4.94 21.49

Albuquerque, NM Cincinnati, OH 18.71 9.04 30.92 5.35 3.23 11.06

Albuquerque, NM Sacramento, CA 10.02 4.51 20.25 9.98 4.94 22.19

Albuquerque, NM Tampa, FL (Metropolitan Area) 8.63 3.80 14.90 11.58 6.71 26.31

Albuquerque, NM Kansas City, MO 4.82 1.67 9.46 20.75 10.57 59.70

Albuquerque, NM San Antonio, TX 19.11 8.62 31.73 5.23 3.15 11.60

Albuquerque, NM Memphis, TN 12.96 5.43 22.63 7.72 4.42 18.41

Albuquerque, NM Omaha, NE 11.65 4.91 19.88 8.58 5.03 20.36

Albuquerque, NM Milwaukee, WI 14.31 6.13 24.94 6.99 4.01 16.33

Albuquerque, NM Madison, WI 12.98 6.21 20.44 7.70 4.89 16.11

Albuquerque, NM New Orleans, LA 16.43 6.40 28.83 6.08 3.47 15.63

Albuquerque, NM San Diego, CA 7.57 2.95 14.70 13.21 6.80 33.87

Albuquerque, NM Norfolk, VA (Metropolitan Area) 14.25 6.15 26.11 7.02 3.83 16.27

Albuquerque, NM Oklahoma City, OK 21.44 10.12 36.85 4.66 2.71 9.88

Albuquerque, NM West Palm Beach/Palm Beach, FL 12.37 5.29 21.41 8.08 4.67 18.91

Albuquerque, NM Portland, OR 13.22 6.17 21.98 7.57 4.55 16.22

Albuquerque, NM Philadelphia, PA 15.29 7.18 25.93 6.54 3.86 13.93

Albuquerque, NM Raleigh/Durham, NC 14.65 5.95 25.43 6.82 3.93 16.81

Albuquerque, NM Reno, NV 16.28 6.45 29.38 6.14 3.40 15.49

Albuquerque, NM Salt Lake City, UT 18.42 7.79 32.17 5.43 3.11 12.84

Albuquerque, NM Tulsa, OK 19.06 8.20 33.85 5.25 2.95 12.19

Albuquerque, NM Knoxville, TN 10.22 4.64 18.68 9.79 5.35 21.55

Albany, GA Washington, DC (Metropolitan Area) 8.06 3.48 14.60 12.41 6.85 28.78

Eureka/Arcata, CA Los Angeles, CA (Metropolitan Area) 16.21 7.38 27.25 6.17 3.67 13.56

Atlantic City, NJ Orlando, FL 13.27 5.43 25.41 7.53 3.94 18.41

Atlantic City, NJ Fort Myers, FL 15.32 6.26 29.10 6.53 3.44 15.97

Atlantic City, NJ Miami, FL (Metropolitan Area) 10.00 4.10 19.24 10.00 5.20 24.38

Alexandria, LA Washington, DC (Metropolitan Area) 13.73 5.65 24.31 7.28 4.11 17.70

Alexandria, LA Los Angeles, CA (Metropolitan Area) 20.71 8.81 36.01 4.83 2.78 11.35

Colorado Springs, CO Dallas/Fort Worth, TX 8.78 3.66 17.21 11.39 5.81 27.33

Colorado Springs, CO Pittsburgh, PA 13.80 5.72 24.90 7.24 4.02 17.47

Colorado Springs, CO Huntsville, AL 13.97 5.70 25.07 7.16 3.99 17.53

Colorado Springs, CO Phoenix, AZ 19.72 9.35 31.82 5.07 3.14 10.69

Colorado Springs, CO Seattle, WA 8.46 3.99 16.34 11.81 6.12 25.03

Colorado Springs, CO Nashville, TN 15.92 6.76 28.52 6.28 3.51 14.78

Colorado Springs, CO Washington, DC (Metropolitan Area) 11.84 5.23 20.96 8.45 4.77 19.13

Colorado Springs, CO Columbus, OH 33.82 18.60 48.00 2.96 2.08 5.38

Colorado Springs, CO St. Louis, MO 16.13 7.65 26.54 6.20 3.77 13.08

Colorado Springs, CO Jacksonville, FL 15.43 5.73 28.42 6.48 3.52 17.45

Colorado Springs, CO Dayton, OH 28.02 13.52 43.30 3.57 2.31 7.40

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Colorado Springs, CO Detroit, MI 10.40 4.46 19.96 9.62 5.01 22.41

Colorado Springs, CO Houston, TX 16.38 6.83 27.09 6.10 3.69 14.81

Colorado Springs, CO Orlando, FL 20.75 9.42 34.06 4.82 2.94 10.61

Colorado Springs, CO Minneapolis/St. Paul, MN 15.98 7.13 27.29 6.26 3.67 14.02

Colorado Springs, CO New York City, NY (Metropolitan Area) 10.88 4.73 18.59 9.19 5.38 21.15

Colorado Springs, CO Las Vegas, NV 15.06 5.59 26.79 6.64 3.73 17.88

Colorado Springs, CO Indianapolis, IN 10.23 4.51 19.93 9.78 5.02 22.17

Colorado Springs, CO San Francisco, CA (Metropolitan Area) 9.29 3.84 18.02 10.77 5.55 26.04

Colorado Springs, CO Miami, FL (Metropolitan Area) 15.42 6.58 26.70 6.49 3.74 15.21

Colorado Springs, CO Los Angeles, CA (Metropolitan Area) 6.35 3.31 14.40 15.74 6.95 30.22

Colorado Springs, CO Sacramento, CA 13.04 5.83 25.72 7.67 3.89 17.14

Colorado Springs, CO Tampa, FL (Metropolitan Area) 16.19 7.80 25.85 6.18 3.87 12.82

Colorado Springs, CO Kansas City, MO 12.22 5.48 21.30 8.18 4.69 18.26

Colorado Springs, CO San Antonio, TX 17.97 8.53 30.13 5.57 3.32 11.72

Colorado Springs, CO Memphis, TN 20.67 9.26 33.39 4.84 2.99 10.80

Colorado Springs, CO New Orleans, LA 19.32 8.06 34.27 5.18 2.92 12.41

Colorado Springs, CO San Diego, CA 16.10 6.99 28.49 6.21 3.51 14.31

Colorado Springs, CO Norfolk, VA (Metropolitan Area) 17.09 7.34 32.39 5.85 3.09 13.63

Colorado Springs, CO Oklahoma City, OK 10.13 4.28 19.21 9.87 5.21 23.38

Colorado Springs, CO Portland, OR 13.47 6.41 24.97 7.42 4.00 15.59

Colorado Springs, CO Philadelphia, PA 16.95 6.97 29.71 5.90 3.37 14.36

Colorado Springs, CO Raleigh/Durham, NC 10.75 4.14 19.31 9.30 5.18 24.13

Dallas/Fort Worth, TX Pittsburgh, PA 3.62 1.84 6.73 27.63 14.86 54.43

Dallas/Fort Worth, TX Huntsville, AL 9.16 3.65 17.32 10.91 5.77 27.36

Dallas/Fort Worth, TX Denver, CO 4.14 1.89 7.59 24.18 13.17 53.05

Dallas/Fort Worth, TX Wausau/Mosinee/Stevens Point, WI 16.21 7.76 26.93 6.17 3.71 12.89

Dallas/Fort Worth, TX Scranton/Wilkes-Barre, PA 16.74 7.34 28.35 5.97 3.53 13.62

Dallas/Fort Worth, TX Tucson, AZ 7.12 3.09 13.14 14.05 7.61 32.36

Dallas/Fort Worth, TX Phoenix, AZ 6.10 2.46 11.28 16.39 8.86 40.63

Dallas/Fort Worth, TX Kalamazoo, MI 11.70 5.09 22.06 8.55 4.53 19.63

Dallas/Fort Worth, TX Shreveport, LA 9.04 4.38 17.39 11.06 5.75 22.84

Dallas/Fort Worth, TX Hartford, CT 9.65 4.19 17.18 10.36 5.82 23.86

Dallas/Fort Worth, TX Seattle, WA 4.91 2.39 10.51 20.36 9.52 41.84

Dallas/Fort Worth, TX Mobile, AL 13.57 5.49 26.46 7.37 3.78 18.21

Dallas/Fort Worth, TX El Paso, TX 6.25 2.69 10.82 16.01 9.24 37.18

Dallas/Fort Worth, TX Nashville, TN 9.83 4.30 16.47 10.17 6.07 23.27

Dallas/Fort Worth, TX Washington, DC (Metropolitan Area) 7.96 3.71 13.01 12.56 7.69 26.99

Dallas/Fort Worth, TX Wichita, KS 8.76 3.99 16.13 11.41 6.20 25.06

Dallas/Fort Worth, TX St. Louis, MO 5.43 2.48 9.86 18.43 10.14 40.31

Dallas/Fort Worth, TX Myrtle Beach, SC 15.62 6.57 27.57 6.40 3.63 15.21

Dallas/Fort Worth, TX Jacksonville, FL 10.70 5.20 16.94 9.34 5.90 19.24

Dallas/Fort Worth, TX Dayton, OH 7.82 3.05 15.20 12.78 6.58 32.75

Dallas/Fort Worth, TX Detroit, MI 10.34 4.68 18.16 9.67 5.51 21.37

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Dallas/Fort Worth, TX Des Moines, IA 8.07 3.79 16.87 12.39 5.93 26.40

Dallas/Fort Worth, TX Houston, TX 12.29 4.46 23.52 8.14 4.25 22.43

Dallas/Fort Worth, TX Orlando, FL 9.07 4.25 15.50 11.03 6.45 23.53

Dallas/Fort Worth, TX Valparaiso, FL 16.40 7.36 29.48 6.10 3.39 13.60

Dallas/Fort Worth, TX Evansville, IN 17.53 7.37 29.25 5.70 3.42 13.58

Dallas/Fort Worth, TX Key West, FL 12.13 4.68 22.53 8.24 4.44 21.36

Dallas/Fort Worth, TX Fargo, ND 14.07 5.71 24.84 7.11 4.03 17.50

Dallas/Fort Worth, TX Fresno, CA 10.46 4.47 17.99 9.56 5.56 22.39

Dallas/Fort Worth, TX Minneapolis/St. Paul, MN 4.84 1.96 9.04 20.66 11.07 50.95

Dallas/Fort Worth, TX New York City, NY (Metropolitan Area) 6.52 2.67 11.09 15.34 9.01 37.46

Dallas/Fort Worth, TX Fort Myers, FL 6.69 2.97 12.61 14.94 7.93 33.62

Dallas/Fort Worth, TX Flint, MI 22.46 10.57 35.98 4.45 2.78 9.46

Dallas/Fort Worth, TX Sioux Falls, SD 14.97 6.62 27.72 6.68 3.61 15.11

Dallas/Fort Worth, TX Fort Smith, AR 10.37 4.90 17.68 9.64 5.66 20.42

Dallas/Fort Worth, TX Fort Wayne, IN 11.94 5.26 22.23 8.37 4.50 19.03

Dallas/Fort Worth, TX Fayetteville, AR 8.77 3.89 14.66 11.40 6.82 25.70

Dallas/Fort Worth, TX Greenville/Spartanburg, SC 9.24 3.91 17.22 10.82 5.81 25.60

Dallas/Fort Worth, TX Spokane, WA 12.30 5.23 20.79 8.13 4.81 19.11

Dallas/Fort Worth, TX Green Bay, WI 10.37 4.58 18.19 9.64 5.50 21.83

Dallas/Fort Worth, TX Grand Rapids, MI 8.62 3.97 15.81 11.60 6.33 25.20

Dallas/Fort Worth, TX Greensboro/High Point, NC 7.92 3.85 15.65 12.64 6.39 25.94

Dallas/Fort Worth, TX Harrisburg, PA 18.43 8.27 30.91 5.43 3.23 12.09

Dallas/Fort Worth, TX Harlingen/San Benito, TX 22.14 11.30 34.28 4.52 2.92 8.85

Dallas/Fort Worth, TX Las Vegas, NV 8.09 3.98 15.64 12.36 6.39 25.10

Dallas/Fort Worth, TX Indianapolis, IN 5.90 2.42 11.21 16.96 8.92 41.29

Dallas/Fort Worth, TX Jackson/Vicksburg, MS 12.06 5.20 22.87 8.29 4.37 19.23

Dallas/Fort Worth, TX San Francisco, CA (Metropolitan Area) 4.20 2.09 8.88 23.81 11.27 47.74

Dallas/Fort Worth, TX Miami, FL (Metropolitan Area) 8.47 3.20 14.49 11.80 6.90 31.24

Dallas/Fort Worth, TX Los Angeles, CA (Metropolitan Area) 5.93 2.56 11.91 16.88 8.40 39.05

Dallas/Fort Worth, TX Little Rock, AR 14.89 6.48 25.41 6.72 3.94 15.44

Dallas/Fort Worth, TX Lubbock, TX 11.51 4.87 21.16 8.69 4.73 20.55

Dallas/Fort Worth, TX Lexington, KY 12.82 5.39 22.69 7.80 4.41 18.54

Dallas/Fort Worth, TX Lafayette, LA 29.57 13.82 46.08 3.38 2.17 7.23

Dallas/Fort Worth, TX Laredo, TX 17.12 8.30 28.07 5.84 3.56 12.05

Dallas/Fort Worth, TX Louisville, KY 10.83 4.68 18.64 9.24 5.36 21.38

Dallas/Fort Worth, TX Midland/Odessa, TX 16.33 6.94 28.17 6.12 3.55 14.41

Dallas/Fort Worth, TX Sacramento, CA 10.75 5.24 18.95 9.31 5.28 19.10

Dallas/Fort Worth, TX Tampa, FL (Metropolitan Area) 8.24 3.57 13.80 12.13 7.25 28.00

Dallas/Fort Worth, TX Kansas City, MO 5.40 2.35 9.33 18.51 10.72 42.54

Dallas/Fort Worth, TX San Antonio, TX 14.94 6.15 25.67 6.69 3.90 16.27

Dallas/Fort Worth, TX Memphis, TN 7.61 3.45 12.48 13.15 8.01 28.97

Dallas/Fort Worth, TX Mission/McAllen/Edinburg, TX 7.28 2.98 14.13 13.74 7.08 33.55

Dallas/Fort Worth, TX Montgomery, AL 33.58 15.28 49.58 2.98 2.02 6.54

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Dallas/Fort Worth, TX Omaha, NE 7.97 3.08 14.08 12.54 7.10 32.51

Dallas/Fort Worth, TX Milwaukee, WI 16.99 8.44 26.15 5.89 3.82 11.85

Dallas/Fort Worth, TX Quad Cities, IL (Metropolitan Area) 21.62 11.13 31.92 4.63 3.13 8.98

Dallas/Fort Worth, TX Madison, WI 8.70 3.78 14.71 11.49 6.80 26.46

Dallas/Fort Worth, TX New Orleans, LA 10.43 4.63 21.09 9.59 4.74 21.59

Dallas/Fort Worth, TX San Diego, CA 5.70 2.77 11.27 17.55 8.88 36.15

Dallas/Fort Worth, TX Norfolk, VA (Metropolitan Area) 8.03 3.27 15.25 12.45 6.56 30.55

Dallas/Fort Worth, TX Pensacola, FL 19.55 8.68 31.72 5.12 3.15 11.52

Dallas/Fort Worth, TX Oklahoma City, OK 14.87 6.52 26.16 6.73 3.82 15.33

Dallas/Fort Worth, TX West Palm Beach/Palm Beach, FL 6.48 2.67 12.00 15.44 8.34 37.61

Dallas/Fort Worth, TX Portland, OR 4.91 2.05 7.91 20.36 12.65 48.82

Dallas/Fort Worth, TX Philadelphia, PA 5.97 2.97 11.03 16.75 9.07 33.69

Dallas/Fort Worth, TX Peoria, IL 15.47 6.45 26.63 6.47 3.75 15.50

Dallas/Fort Worth, TX Paso Robles/San Luis Obispo, CA 13.86 6.28 25.33 7.21 3.95 15.93

Dallas/Fort Worth, TX Palm Springs, CA 9.84 4.07 18.33 10.16 5.45 24.56

Dallas/Fort Worth, TX Portland, ME 30.07 16.57 43.49 3.33 2.30 6.04

Dallas/Fort Worth, TX Rapid City, SD 13.22 5.72 24.21 7.56 4.13 17.48

Dallas/Fort Worth, TX Raleigh/Durham, NC 7.39 3.27 12.57 13.53 7.96 30.60

Dallas/Fort Worth, TX Richmond, VA 10.90 4.45 19.79 9.17 5.05 22.45

Dallas/Fort Worth, TX Reno, NV 13.11 5.18 25.55 7.63 3.91 19.30

Dallas/Fort Worth, TX Roanoke, VA 12.16 4.95 20.95 8.22 4.77 20.22

Dallas/Fort Worth, TX Rochester, NY 12.40 6.38 20.27 8.06 4.93 15.66

Dallas/Fort Worth, TX Salt Lake City, UT 8.42 3.88 14.76 11.88 6.78 25.75

Dallas/Fort Worth, TX Tulsa, OK 10.73 4.30 19.24 9.32 5.20 23.24

Dallas/Fort Worth, TX Savannah, GA 15.11 6.60 25.51 6.62 3.92 15.15

Dallas/Fort Worth, TX Santa Barbara, CA 15.33 7.65 26.33 6.52 3.80 13.07

Dallas/Fort Worth, TX South Bend, IN 13.43 5.91 22.50 7.44 4.44 16.92

Dallas/Fort Worth, TX Springfield, MO 7.42 2.88 13.16 13.48 7.60 34.73

Dallas/Fort Worth, TX San Angelo, TX 13.08 5.80 22.43 7.65 4.46 17.24

Dallas/Fort Worth, TX Salinas/Monterey, CA 14.95 6.56 25.50 6.69 3.92 15.24

Dallas/Fort Worth, TX Sarasota/Bradenton, FL 19.18 9.83 29.72 5.21 3.36 10.17

Dallas/Fort Worth, TX Syracuse, NY 12.75 5.29 21.95 7.84 4.56 18.91

Dallas/Fort Worth, TX Tallahassee, FL 15.38 7.01 28.32 6.50 3.53 14.27

Dallas/Fort Worth, TX Knoxville, TN 10.43 4.11 18.67 9.59 5.36 24.35

Pittsburgh, PA Tucson, AZ 8.65 3.32 17.45 11.57 5.73 30.12

Pittsburgh, PA Seattle, WA 12.15 5.00 20.44 8.23 4.89 20.01

Pittsburgh, PA Washington, DC (Metropolitan Area) 23.37 12.65 34.41 4.28 2.91 7.90

Pittsburgh, PA Wichita, KS 18.04 9.02 27.59 5.54 3.62 11.09

Pittsburgh, PA St. Louis, MO 19.51 8.64 37.34 5.13 2.68 11.57

Pittsburgh, PA Wilmington, NC 7.64 2.98 14.54 13.10 6.88 33.59

Pittsburgh, PA San Francisco, CA (Metropolitan Area) 7.16 3.30 12.60 13.97 7.94 30.27

Pittsburgh, PA Sacramento, CA 13.49 6.06 24.91 7.41 4.02 16.51

Pittsburgh, PA Tampa, FL (Metropolitan Area) 6.80 3.18 12.29 14.71 8.14 31.44

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Pittsburgh, PA San Antonio, TX 9.84 4.02 17.65 10.17 5.66 24.85

Pittsburgh, PA San Diego, CA 22.19 12.96 31.59 4.51 3.17 7.72

Pittsburgh, PA West Palm Beach/Palm Beach, FL 12.82 5.19 22.66 7.80 4.41 19.26

Pittsburgh, PA Portland, OR 7.55 2.68 14.50 13.24 6.89 37.29

Pittsburgh, PA Portland, ME 7.69 3.46 14.85 13.01 6.73 28.89

Pittsburgh, PA Raleigh/Durham, NC 16.11 6.47 29.16 6.21 3.43 15.46

Pittsburgh, PA Reno, NV 21.73 10.12 35.91 4.60 2.78 9.89

Pittsburgh, PA Salt Lake City, UT 10.47 4.21 19.06 9.56 5.25 23.78

Pittsburgh, PA Tulsa, OK 7.61 2.70 15.00 13.13 6.67 36.99

Pittsburgh, PA Savannah, GA 13.47 5.87 22.59 7.43 4.43 17.05

Pittsburgh, PA Sarasota/Bradenton, FL 13.91 6.47 26.13 7.19 3.83 15.45

Pittsburgh, PA Syracuse, NY 14.31 5.97 26.10 6.99 3.83 16.75

Augusta, GA Dallas/Fort Worth, TX 16.57 8.00 29.23 6.03 3.42 12.51

Augusta, GA Boston, MA (Metropolitan Area) 12.73 5.56 23.27 7.86 4.30 17.98

Augusta, GA Washington, DC (Metropolitan Area) 12.63 5.89 23.35 7.92 4.28 16.98

Augusta, GA Chicago, IL 20.11 8.75 34.04 4.97 2.94 11.43

Augusta, GA New York City, NY (Metropolitan Area) 11.00 4.67 20.84 9.09 4.80 21.40

Augusta, GA Miami, FL (Metropolitan Area) 21.10 9.43 34.74 4.74 2.88 10.61

Augusta, GA Los Angeles, CA (Metropolitan Area) 16.23 6.16 29.35 6.16 3.41 16.24

Huntsville, AL Pittsburgh, PA 8.59 3.31 15.51 11.64 6.45 30.19

Huntsville, AL Phoenix, AZ 11.56 4.77 23.17 8.65 4.32 20.95

Huntsville, AL Seattle, WA 11.58 5.02 21.64 8.64 4.62 19.93

Huntsville, AL Washington, DC (Metropolitan Area) 14.28 6.15 23.93 7.00 4.18 16.27

Huntsville, AL Jacksonville, FL 9.62 4.15 18.14 10.39 5.51 24.11

Huntsville, AL Orlando, FL 34.54 19.53 47.22 2.90 2.12 5.12

Huntsville, AL Minneapolis/St. Paul, MN 6.69 2.51 12.91 14.94 7.75 39.91

Huntsville, AL New York City, NY (Metropolitan Area) 13.03 5.40 22.45 7.67 4.45 18.52

Huntsville, AL Las Vegas, NV 20.37 9.52 33.23 4.91 3.01 10.50

Huntsville, AL San Francisco, CA (Metropolitan Area) 8.61 3.74 15.99 11.61 6.25 26.72

Huntsville, AL Miami, FL (Metropolitan Area) 19.76 9.38 33.93 5.06 2.95 10.67

Huntsville, AL Los Angeles, CA (Metropolitan Area) 8.89 3.78 15.62 11.25 6.40 26.43

Huntsville, AL Tampa, FL (Metropolitan Area) 15.35 7.64 25.08 6.51 3.99 13.09

Huntsville, AL San Antonio, TX 20.01 8.78 31.53 5.00 3.17 11.39

Huntsville, AL San Diego, CA 11.95 5.00 21.79 8.37 4.59 20.01

Huntsville, AL Norfolk, VA (Metropolitan Area) 18.12 8.05 30.60 5.52 3.27 12.42

Huntsville, AL Philadelphia, PA 11.11 4.92 18.58 9.00 5.38 20.32

Huntsville, AL Raleigh/Durham, NC 11.74 5.26 19.96 8.52 5.01 19.03

Huntsville, AL Richmond, VA 8.71 3.34 16.75 11.48 5.97 29.94

Huntsville, AL Salt Lake City, UT 9.40 3.80 17.47 10.63 5.73 26.30

Albany, NY Dallas/Fort Worth, TX 6.37 2.49 12.11 15.71 8.26 40.16

Albany, NY Pittsburgh, PA 33.72 22.87 43.51 2.97 2.30 4.37

Albany, NY Denver, CO 9.15 4.19 17.38 10.92 5.75 23.89

Albany, NY Atlanta, GA (Metropolitan Area) 16.84 8.84 24.88 5.94 4.02 11.31

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Albany, NY Austin, TX 9.78 3.99 18.56 10.22 5.39 25.05

Albany, NY Phoenix, AZ 5.14 1.96 12.74 19.47 7.85 51.14

Albany, NY Seattle, WA 7.72 3.25 14.78 12.95 6.77 30.81

Albany, NY Cleveland, OH (Metropolitan Area) 27.79 12.06 46.67 3.60 2.14 8.29

Albany, NY Nashville, TN 11.24 5.09 18.74 8.90 5.34 19.67

Albany, NY Washington, DC (Metropolitan Area) 5.86 2.26 11.16 17.07 8.96 44.17

Albany, NY Chicago, IL 12.85 4.95 21.67 7.78 4.62 20.21

Albany, NY Charleston, SC 12.13 5.26 21.90 8.24 4.57 19.00

Albany, NY Charlotte, NC 7.28 2.95 12.95 13.73 7.72 33.94

Albany, NY Columbus, OH 12.12 5.59 20.96 8.25 4.77 17.89

Albany, NY St. Louis, MO 10.62 5.20 19.97 9.42 5.01 19.24

Albany, NY Myrtle Beach, SC 36.46 19.75 50.40 2.74 1.98 5.06

Albany, NY Jacksonville, FL 14.13 5.27 24.37 7.08 4.10 18.99

Albany, NY Detroit, MI 16.49 7.11 28.15 6.06 3.55 14.06

Albany, NY Houston, TX 9.64 3.91 16.37 10.37 6.11 25.55

Albany, NY Orlando, FL 16.71 8.24 28.47 5.98 3.51 12.14

Albany, NY Minneapolis/St. Paul, MN 22.19 10.53 35.04 4.51 2.85 9.49

Albany, NY Fort Myers, FL 21.82 10.65 34.57 4.58 2.89 9.39

Albany, NY Greenville/Spartanburg, SC 12.10 5.51 20.61 8.26 4.85 18.16

Albany, NY Las Vegas, NV 8.07 3.37 15.24 12.39 6.56 29.65

Albany, NY Indianapolis, IN 7.86 3.13 14.35 12.73 6.97 31.96

Albany, NY San Francisco, CA (Metropolitan Area) 5.49 2.21 9.97 18.22 10.03 45.26

Albany, NY Miami, FL (Metropolitan Area) 15.67 7.24 27.38 6.38 3.65 13.81

Albany, NY Los Angeles, CA (Metropolitan Area) 4.53 1.92 8.13 22.09 12.30 52.04

Albany, NY Louisville, KY 15.52 6.85 27.44 6.44 3.64 14.60

Albany, NY Cincinnati, OH 13.63 6.38 23.38 7.33 4.28 15.68

Albany, NY Tampa, FL (Metropolitan Area) 8.58 3.70 16.41 11.65 6.09 27.00

Albany, NY Kansas City, MO 9.35 3.76 17.39 10.69 5.75 26.62

Albany, NY San Antonio, TX 10.76 3.98 20.50 9.30 4.88 25.13

Albany, NY Milwaukee, WI 13.39 5.95 22.84 7.47 4.38 16.81

Albany, NY New Orleans, LA 14.56 5.36 25.47 6.87 3.93 18.65

Albany, NY San Diego, CA 6.10 2.28 11.72 16.39 8.54 43.84

Albany, NY Norfolk, VA (Metropolitan Area) 26.59 14.55 39.85 3.76 2.51 6.87

Albany, NY West Palm Beach/Palm Beach, FL 8.63 3.61 16.09 11.58 6.22 27.68

Albany, NY Portland, OR 6.73 2.81 14.82 14.85 6.75 35.61

Albany, NY Philadelphia, PA 5.63 2.15 10.06 17.77 9.94 46.41

Albany, NY Raleigh/Durham, NC 11.16 5.09 21.01 8.96 4.76 19.67

Albany, NY Salt Lake City, UT 13.59 6.29 21.93 7.36 4.56 15.89

Amarillo, TX Dallas/Fort Worth, TX 15.23 6.98 27.98 6.57 3.57 14.33

Amarillo, TX Atlanta, GA (Metropolitan Area) 10.85 4.35 20.41 9.22 4.90 23.01

Amarillo, TX Austin, TX 13.14 5.78 24.05 7.61 4.16 17.29

Amarillo, TX Phoenix, AZ 16.47 7.02 32.34 6.07 3.09 14.24

Amarillo, TX Washington, DC (Metropolitan Area) 11.89 4.68 22.54 8.41 4.44 21.35

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Amarillo, TX Chicago, IL 8.63 3.70 18.17 11.59 5.50 27.04

Amarillo, TX Houston, TX 15.94 6.68 29.20 6.28 3.43 14.98

Amarillo, TX Orlando, FL 15.09 7.26 23.91 6.63 4.18 13.77

Amarillo, TX New York City, NY (Metropolitan Area) 8.68 3.67 15.76 11.52 6.35 27.26

Amarillo, TX Las Vegas, NV 13.33 6.00 21.51 7.50 4.65 16.67

Amarillo, TX San Francisco, CA (Metropolitan Area) 8.83 2.88 16.08 11.32 6.22 34.69

Amarillo, TX Los Angeles, CA (Metropolitan Area) 8.16 3.23 14.81 12.26 6.75 30.95

Amarillo, TX San Antonio, TX 16.57 6.69 31.44 6.04 3.18 14.96

Amarillo, TX San Diego, CA 15.82 6.28 29.17 6.32 3.43 15.92

Durango, CO San Francisco, CA (Metropolitan Area) 12.83 5.72 22.27 7.80 4.49 17.48

Durango, CO Los Angeles, CA (Metropolitan Area) 10.88 4.53 20.73 9.19 4.82 22.06

Denver, CO Pittsburgh, PA 9.36 4.23 15.88 10.68 6.30 23.64

Denver, CO Huntsville, AL 15.46 7.17 24.49 6.47 4.08 13.95

Denver, CO Tucson, AZ 7.22 2.74 13.48 13.85 7.42 36.48

Denver, CO Phoenix, AZ 7.64 3.16 13.29 13.09 7.52 31.61

Denver, CO Shreveport, LA 10.62 4.44 20.86 9.42 4.79 22.54

Denver, CO Hartford, CT 13.36 5.74 23.38 7.49 4.28 17.43

Denver, CO Seattle, WA 4.24 1.91 8.12 23.60 12.33 52.30

Denver, CO Mobile, AL 20.81 9.43 36.76 4.80 2.72 10.60

Denver, CO El Paso, TX 15.22 6.51 29.34 6.57 3.41 15.37

Denver, CO Nashville, TN 11.22 4.93 21.75 8.91 4.60 20.27

Denver, CO Washington, DC (Metropolitan Area) 8.79 3.36 16.37 11.38 6.11 29.77

Denver, CO Wichita, KS 8.21 3.25 14.10 12.19 7.09 30.81

Denver, CO St. Louis, MO 7.16 3.10 13.32 13.96 7.51 32.22

Denver, CO Jacksonville, FL 15.38 6.87 24.80 6.50 4.03 14.55

Denver, CO Detroit, MI 7.44 3.41 13.38 13.44 7.47 29.32

Denver, CO Des Moines, IA 9.31 3.74 17.66 10.74 5.66 26.75

Denver, CO Houston, TX 4.08 1.73 7.73 24.50 12.94 57.83

Denver, CO Orlando, FL 13.06 6.66 21.48 7.66 4.66 15.01

Denver, CO Valparaiso, FL 24.12 11.24 39.42 4.15 2.54 8.90

Denver, CO Eugene, OR 10.32 4.04 21.26 9.69 4.70 24.76

Denver, CO Fargo, ND 17.83 8.11 31.03 5.61 3.22 12.33

Denver, CO Fresno, CA 27.95 13.12 43.25 3.58 2.31 7.62

Denver, CO Minneapolis/St. Paul, MN 9.17 3.84 16.10 10.90 6.21 26.05

Denver, CO New York City, NY (Metropolitan Area) 6.21 2.74 11.46 16.10 8.73 36.49

Denver, CO Fort Myers, FL 10.78 4.87 21.08 9.28 4.74 20.52

Denver, CO Sioux Falls, SD 14.78 5.40 26.70 6.77 3.74 18.53

Denver, CO Fort Wayne, IN 18.49 7.67 30.14 5.41 3.32 13.05

Denver, CO Greenville/Spartanburg, SC 19.24 9.42 29.77 5.20 3.36 10.62

Denver, CO Spokane, WA 9.39 4.13 16.67 10.64 6.00 24.23

Denver, CO Green Bay, WI 21.77 10.29 36.85 4.59 2.71 9.72

Denver, CO Grand Rapids, MI 23.99 11.73 37.57 4.17 2.66 8.53

Denver, CO Greensboro/High Point, NC 13.65 5.95 25.33 7.32 3.95 16.81

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Denver, CO Harrisburg, PA 16.35 7.07 28.31 6.12 3.53 14.14

Denver, CO Helena, MT 11.51 5.07 20.14 8.69 4.96 19.71

Denver, CO Las Vegas, NV 11.37 4.99 19.66 8.79 5.09 20.06

Denver, CO Idaho Falls, ID 12.30 5.10 24.40 8.13 4.10 19.59

Denver, CO Indianapolis, IN 9.74 4.23 16.85 10.27 5.94 23.67

Denver, CO Jackson, WY 10.86 4.20 21.05 9.21 4.75 23.82

Denver, CO Jackson/Vicksburg, MS 8.80 4.09 16.74 11.36 5.98 24.44

Denver, CO San Francisco, CA (Metropolitan Area) 3.72 1.39 7.72 26.86 12.96 71.93

Denver, CO Miami, FL (Metropolitan Area) 10.78 5.21 18.69 9.28 5.35 19.18

Denver, CO Los Angeles, CA (Metropolitan Area) 5.99 2.79 10.58 16.70 9.45 35.81

Denver, CO Little Rock, AR 9.85 4.34 18.68 10.15 5.35 23.04

Denver, CO Lexington, KY 20.95 9.59 34.79 4.77 2.87 10.43

Denver, CO Louisville, KY 12.91 5.40 22.09 7.74 4.53 18.52

Denver, CO Saginaw/Bay City/Midland, MI 15.11 6.58 26.84 6.62 3.73 15.19

Denver, CO Sacramento, CA 10.21 5.02 18.12 9.80 5.52 19.93

Denver, CO Tampa, FL (Metropolitan Area) 9.78 4.21 16.64 10.22 6.01 23.75

Denver, CO Kansas City, MO 6.34 2.78 12.13 15.78 8.24 35.99

Denver, CO San Antonio, TX 13.67 6.22 23.31 7.32 4.29 16.07

Denver, CO Memphis, TN 23.90 11.00 38.54 4.18 2.59 9.09

Denver, CO Mission/McAllen/Edinburg, TX 17.07 6.80 29.26 5.86 3.42 14.71

Denver, CO Omaha, NE 10.75 4.37 19.00 9.30 5.26 22.88

Denver, CO Milwaukee, WI 15.95 7.71 26.30 6.27 3.80 12.97

Denver, CO Quad Cities, IL (Metropolitan Area) 12.05 5.40 21.26 8.30 4.70 18.52

Denver, CO Madison, WI 16.57 6.35 29.03 6.04 3.44 15.75

Denver, CO Missoula, MT 22.15 9.09 35.27 4.51 2.84 11.00

Denver, CO New Orleans, LA 10.20 4.31 17.49 9.81 5.72 23.20

Denver, CO San Diego, CA 5.87 2.32 11.40 17.04 8.77 43.10

Denver, CO Norfolk, VA (Metropolitan Area) 10.93 5.08 19.40 9.15 5.16 19.69

Denver, CO Pensacola, FL 13.27 5.33 22.38 7.53 4.47 18.77

Denver, CO Oklahoma City, OK 6.24 1.89 11.20 16.03 8.96 52.90

Denver, CO West Palm Beach/Palm Beach, FL 14.65 6.11 25.38 6.83 3.94 16.36

Denver, CO Portland, OR 7.22 3.02 13.21 13.86 7.57 33.12

Denver, CO Philadelphia, PA 3.95 1.44 7.91 25.30 12.65 69.54

Denver, CO Peoria, IL 15.80 6.94 27.26 6.33 3.67 14.42

Denver, CO Pasco/Kennewick/Richland, WA 14.77 5.96 32.97 6.77 3.03 16.77

Denver, CO Palm Springs, CA 13.78 5.75 29.19 7.26 3.43 17.39

Denver, CO Portland, ME 8.87 3.63 17.60 11.27 5.68 27.55

Denver, CO Raleigh/Durham, NC 4.46 1.46 9.47 22.44 10.56 68.46

Denver, CO Richmond, VA 12.50 5.30 21.74 8.00 4.60 18.85

Denver, CO Reno, NV 11.19 4.93 19.53 8.94 5.12 20.30

Denver, CO Roanoke, VA 14.38 5.99 25.04 6.95 3.99 16.69

Denver, CO Rochester, NY 9.13 3.95 15.57 10.96 6.42 25.30

Denver, CO Salt Lake City, UT 7.13 2.78 12.71 14.02 7.87 35.96

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Denver, CO Tulsa, OK 9.82 3.79 17.93 10.18 5.58 26.42

Denver, CO Savannah, GA 15.92 7.16 26.77 6.28 3.74 13.96

Denver, CO Santa Barbara, CA 22.19 10.53 37.39 4.51 2.67 9.49

Denver, CO Springfield, MO 22.77 9.81 40.36 4.39 2.48 10.20

Denver, CO Salinas/Monterey, CA 17.99 7.53 33.29 5.56 3.00 13.27

Denver, CO Sarasota/Bradenton, FL 24.19 11.11 41.52 4.13 2.41 9.00

Denver, CO Syracuse, NY 13.34 5.60 22.81 7.49 4.38 17.86

Denver, CO Tallahassee, FL 19.22 8.66 33.18 5.20 3.01 11.55

Denver, CO Knoxville, TN 11.19 4.77 21.87 8.94 4.57 20.97

Aspen, CO Dallas/Fort Worth, TX 17.68 6.87 31.50 5.66 3.18 14.56

Aspen, CO Denver, CO 17.19 8.33 27.57 5.82 3.63 12.00

Aspen, CO Boston, MA (Metropolitan Area) 10.18 3.90 17.07 9.82 5.86 25.61

Aspen, CO Washington, DC (Metropolitan Area) 12.60 5.34 22.98 7.94 4.35 18.71

Aspen, CO Chicago, IL 11.09 5.29 19.67 9.02 5.08 18.90

Aspen, CO New York City, NY (Metropolitan Area) 11.49 4.59 22.09 8.70 4.53 21.80

Aspen, CO San Francisco, CA (Metropolitan Area) 11.43 4.96 20.76 8.75 4.82 20.15

Aspen, CO Miami, FL (Metropolitan Area) 13.52 5.06 26.37 7.40 3.79 19.76

Aspen, CO Los Angeles, CA (Metropolitan Area) 12.65 4.84 22.84 7.90 4.38 20.68

Atlanta, GA (Metropolitan Area) Colorado Springs, CO 19.46 8.90 31.37 5.14 3.19 11.23

Atlanta, GA (Metropolitan Area) Dallas/Fort Worth, TX 4.74 2.12 8.56 21.10 11.68 47.24

Atlanta, GA (Metropolitan Area) Pittsburgh, PA 3.36 1.18 6.29 29.73 15.89 84.78

Atlanta, GA (Metropolitan Area) Huntsville, AL 14.18 6.12 26.46 7.05 3.78 16.35

Atlanta, GA (Metropolitan Area) Denver, CO 7.77 3.35 13.82 12.87 7.23 29.83

Atlanta, GA (Metropolitan Area) Austin, TX 8.53 3.73 14.69 11.72 6.81 26.78

Atlanta, GA (Metropolitan Area) Wausau/Mosinee/Stevens Point, WI 8.88 4.16 14.75 11.27 6.78 24.06

Atlanta, GA (Metropolitan Area) Scranton/Wilkes-Barre, PA 17.20 6.93 30.82 5.81 3.24 14.43

Atlanta, GA (Metropolitan Area) Tucson, AZ 14.13 5.30 23.64 7.08 4.23 18.88

Atlanta, GA (Metropolitan Area) Phoenix, AZ 5.94 2.67 11.24 16.85 8.90 37.51

Atlanta, GA (Metropolitan Area) Kalamazoo, MI 20.67 8.68 34.41 4.84 2.91 11.52

Atlanta, GA (Metropolitan Area) Shreveport, LA 15.48 7.08 25.60 6.46 3.91 14.13

Atlanta, GA (Metropolitan Area) Hartford, CT 12.36 6.14 20.93 8.09 4.78 16.29

Atlanta, GA (Metropolitan Area) Seattle, WA 5.85 2.19 11.33 17.10 8.83 45.65

Atlanta, GA (Metropolitan Area) Mobile, AL 7.81 3.33 14.66 12.80 6.82 30.01

Atlanta, GA (Metropolitan Area) Bangor, ME 9.39 3.92 17.77 10.65 5.63 25.54

Atlanta, GA (Metropolitan Area) Birmingham, AL 15.59 7.03 28.23 6.42 3.54 14.23

Atlanta, GA (Metropolitan Area) El Paso, TX 12.65 5.28 22.08 7.90 4.53 18.93

Atlanta, GA (Metropolitan Area) Billings, MT 15.48 6.78 28.25 6.46 3.54 14.74

Atlanta, GA (Metropolitan Area) Cleveland, OH (Metropolitan Area) 6.95 2.92 12.89 14.39 7.76 34.22

Atlanta, GA (Metropolitan Area) Nashville, TN 19.21 9.54 30.56 5.21 3.27 10.49

Atlanta, GA (Metropolitan Area) Boise, ID 9.83 3.76 18.14 10.17 5.51 26.59

Atlanta, GA (Metropolitan Area) Boston, MA (Metropolitan Area) 5.28 2.61 8.82 18.93 11.34 38.27

Atlanta, GA (Metropolitan Area) Baton Rouge, LA 17.17 7.12 29.44 5.82 3.40 14.05

Atlanta, GA (Metropolitan Area) Burlington, VT 13.43 6.09 21.09 7.45 4.74 16.43

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Atlanta, GA (Metropolitan Area) Buffalo, NY 7.62 3.27 14.31 13.12 6.99 30.56

Atlanta, GA (Metropolitan Area) Bozeman, MT 10.08 4.35 18.47 9.92 5.41 23.00

Atlanta, GA (Metropolitan Area) Washington, DC (Metropolitan Area) 6.82 3.16 11.91 14.67 8.40 31.65

Atlanta, GA (Metropolitan Area) Columbia, SC 10.51 4.52 18.41 9.51 5.43 22.14

Atlanta, GA (Metropolitan Area) Wichita, KS 15.64 7.30 24.16 6.39 4.14 13.70

Atlanta, GA (Metropolitan Area) Chicago, IL 4.22 2.04 7.32 23.71 13.67 49.10

Atlanta, GA (Metropolitan Area) Charlottesville, VA 30.96 15.31 46.48 3.23 2.15 6.53

Atlanta, GA (Metropolitan Area) Charleston, SC 8.70 3.82 15.38 11.49 6.50 26.19

Atlanta, GA (Metropolitan Area) Cedar Rapids/Iowa City, IA 12.94 5.78 22.69 7.73 4.41 17.30

Atlanta, GA (Metropolitan Area) Charlotte, NC 9.85 4.30 16.84 10.15 5.94 23.28

Atlanta, GA (Metropolitan Area) Columbus, OH 7.61 3.42 13.22 13.14 7.56 29.20

Atlanta, GA (Metropolitan Area) St. Louis, MO 8.47 4.26 15.17 11.81 6.59 23.48

Atlanta, GA (Metropolitan Area) Myrtle Beach, SC 17.00 7.98 28.14 5.88 3.55 12.54

Atlanta, GA (Metropolitan Area) Jacksonville, FL 8.75 3.88 14.80 11.43 6.76 25.76

Atlanta, GA (Metropolitan Area) Corpus Christi, TX 15.52 5.63 27.11 6.44 3.69 17.77

Atlanta, GA (Metropolitan Area) Charleston/Dunbar, WV 10.77 4.59 18.50 9.29 5.41 21.79

Atlanta, GA (Metropolitan Area) Daytona Beach, FL 17.53 7.28 31.90 5.70 3.13 13.74

Atlanta, GA (Metropolitan Area) Dayton, OH 12.46 5.50 20.83 8.03 4.80 18.17

Atlanta, GA (Metropolitan Area) Detroit, MI 5.42 2.28 10.85 18.46 9.21 43.88

Atlanta, GA (Metropolitan Area) Des Moines, IA 12.87 5.74 21.40 7.77 4.67 17.42

Atlanta, GA (Metropolitan Area) Houston, TX 3.44 1.34 6.62 29.05 15.11 74.50

Atlanta, GA (Metropolitan Area) Orlando, FL 7.58 3.17 15.28 13.20 6.54 31.59

Atlanta, GA (Metropolitan Area) Key West, FL 22.97 10.57 37.91 4.35 2.64 9.46

Atlanta, GA (Metropolitan Area) Fresno, CA 9.53 4.40 18.85 10.49 5.30 22.71

Atlanta, GA (Metropolitan Area) Minneapolis/St. Paul, MN 3.76 1.59 7.88 26.60 12.73 62.93

Atlanta, GA (Metropolitan Area) New York City, NY (Metropolitan Area) 6.01 2.77 10.00 16.63 10.00 36.12

Atlanta, GA (Metropolitan Area) Fort Myers, FL 8.95 3.68 18.28 11.18 5.47 27.16

Atlanta, GA (Metropolitan Area) Flint, MI 8.59 3.92 16.34 11.65 6.12 25.49

Atlanta, GA (Metropolitan Area) Sioux Falls, SD 12.76 5.10 23.78 7.84 4.20 19.61

Atlanta, GA (Metropolitan Area) Fort Wayne, IN 22.02 11.18 33.56 4.54 2.98 8.95

Atlanta, GA (Metropolitan Area) Fayetteville, AR 10.64 4.81 19.57 9.40 5.11 20.77

Atlanta, GA (Metropolitan Area) Spokane, WA 10.14 3.92 17.45 9.86 5.73 25.53

Atlanta, GA (Metropolitan Area) Gainesville, FL 18.99 9.23 31.03 5.26 3.22 10.83

Atlanta, GA (Metropolitan Area) Green Bay, WI 13.43 5.70 25.32 7.45 3.95 17.55

Atlanta, GA (Metropolitan Area) Grand Rapids, MI 13.59 6.65 21.72 7.36 4.60 15.03

Atlanta, GA (Metropolitan Area) Greensboro/High Point, NC 21.68 12.79 29.45 4.61 3.40 7.82

Atlanta, GA (Metropolitan Area) Harrisburg, PA 8.40 3.51 16.44 11.91 6.08 28.49

Atlanta, GA (Metropolitan Area) Las Vegas, NV 9.04 3.79 17.08 11.06 5.86 26.37

Atlanta, GA (Metropolitan Area) Wilmington, NC 12.79 5.47 21.90 7.82 4.57 18.29

Atlanta, GA (Metropolitan Area) Indianapolis, IN 8.91 3.94 14.92 11.22 6.70 25.36

Atlanta, GA (Metropolitan Area) Jackson, WY 13.58 6.29 25.43 7.36 3.93 15.89

Atlanta, GA (Metropolitan Area) Jackson/Vicksburg, MS 13.08 6.18 21.42 7.65 4.67 16.17

Atlanta, GA (Metropolitan Area) San Francisco, CA (Metropolitan Area) 6.16 2.41 11.43 16.23 8.75 41.46

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Atlanta, GA (Metropolitan Area) Miami, FL (Metropolitan Area) 4.72 1.95 8.67 21.18 11.53 51.17

Atlanta, GA (Metropolitan Area) Los Angeles, CA (Metropolitan Area) 6.36 2.78 11.18 15.73 8.94 36.01

Atlanta, GA (Metropolitan Area) Little Rock, AR 11.36 4.66 20.23 8.80 4.94 21.45

Atlanta, GA (Metropolitan Area) Lubbock, TX 11.25 4.39 20.81 8.89 4.81 22.80

Atlanta, GA (Metropolitan Area) Lexington, KY 15.10 6.56 25.53 6.62 3.92 15.25

Atlanta, GA (Metropolitan Area) Louisville, KY 12.25 6.23 19.58 8.16 5.11 16.06

Atlanta, GA (Metropolitan Area) Cincinnati, OH 17.92 9.37 25.59 5.58 3.91 10.67

Atlanta, GA (Metropolitan Area) Sacramento, CA 8.90 4.38 17.24 11.23 5.80 22.83

Atlanta, GA (Metropolitan Area) Tampa, FL (Metropolitan Area) 3.68 1.55 6.20 27.20 16.15 64.37

Atlanta, GA (Metropolitan Area) Kansas City, MO 3.73 1.57 6.82 26.81 14.66 63.86

Atlanta, GA (Metropolitan Area) San Antonio, TX 7.33 3.14 13.07 13.65 7.65 31.88

Atlanta, GA (Metropolitan Area) Memphis, TN 7.45 3.31 14.44 13.42 6.92 30.22

Atlanta, GA (Metropolitan Area) Mission/McAllen/Edinburg, TX 13.42 5.75 24.30 7.45 4.12 17.40

Atlanta, GA (Metropolitan Area) Omaha, NE 8.19 3.76 15.02 12.21 6.66 26.57

Atlanta, GA (Metropolitan Area) Milwaukee, WI 10.61 4.31 17.34 9.42 5.77 23.21

Atlanta, GA (Metropolitan Area) Melbourne, FL 13.24 5.38 24.39 7.55 4.10 18.59

Atlanta, GA (Metropolitan Area) Quad Cities, IL (Metropolitan Area) 11.69 5.50 20.62 8.56 4.85 18.19

Atlanta, GA (Metropolitan Area) Monroe, LA 11.06 4.81 19.23 9.04 5.20 20.79

Atlanta, GA (Metropolitan Area) Madison, WI 11.57 5.14 20.10 8.65 4.97 19.47

Atlanta, GA (Metropolitan Area) New Orleans, LA 8.33 2.61 17.44 12.01 5.73 38.33

Atlanta, GA (Metropolitan Area) San Diego, CA 8.69 3.78 15.86 11.51 6.30 26.49

Atlanta, GA (Metropolitan Area) Norfolk, VA (Metropolitan Area) 11.49 4.73 20.71 8.71 4.83 21.13

Atlanta, GA (Metropolitan Area) Pensacola, FL 24.12 14.04 34.48 4.15 2.90 7.12

Atlanta, GA (Metropolitan Area) Oklahoma City, OK 12.59 5.41 23.36 7.94 4.28 18.47

Atlanta, GA (Metropolitan Area) West Palm Beach/Palm Beach, FL 8.55 3.70 15.04 11.69 6.65 27.05

Atlanta, GA (Metropolitan Area) Portland, OR 6.62 2.91 12.71 15.10 7.87 34.36

Atlanta, GA (Metropolitan Area) Philadelphia, PA 5.77 2.38 10.60 17.32 9.43 42.01

Atlanta, GA (Metropolitan Area) Palm Springs, CA 16.28 7.05 29.05 6.14 3.44 14.18

Atlanta, GA (Metropolitan Area) Portland, ME 10.82 4.45 18.99 9.24 5.27 22.46

Atlanta, GA (Metropolitan Area) Raleigh/Durham, NC 8.75 3.72 15.37 11.43 6.51 26.86

Atlanta, GA (Metropolitan Area) Richmond, VA 12.17 5.49 20.67 8.22 4.84 18.22

Atlanta, GA (Metropolitan Area) Reno, NV 11.18 4.88 21.64 8.94 4.62 20.48

Atlanta, GA (Metropolitan Area) Roanoke, VA 9.66 4.25 18.12 10.36 5.52 23.52

Atlanta, GA (Metropolitan Area) Rochester, NY 17.33 7.95 28.06 5.77 3.56 12.58

Atlanta, GA (Metropolitan Area) Salt Lake City, UT 8.04 3.39 15.25 12.44 6.56 29.50

Atlanta, GA (Metropolitan Area) Tulsa, OK 8.32 3.61 15.00 12.02 6.67 27.67

Atlanta, GA (Metropolitan Area) Savannah, GA 15.55 7.04 28.02 6.43 3.57 14.21

Atlanta, GA (Metropolitan Area) South Bend, IN 20.55 10.23 33.34 4.87 3.00 9.78

Atlanta, GA (Metropolitan Area) Springfield, MO 11.01 4.55 21.05 9.08 4.75 21.96

Atlanta, GA (Metropolitan Area) Sarasota/Bradenton, FL 11.78 4.62 20.71 8.49 4.83 21.65

Atlanta, GA (Metropolitan Area) Syracuse, NY 11.75 5.31 22.12 8.51 4.52 18.83

Atlanta, GA (Metropolitan Area) Tallahassee, FL 27.59 19.10 35.49 3.62 2.82 5.24

Atlanta, GA (Metropolitan Area) Bristol/Johnson City/Kingsport, TN 19.35 8.78 33.52 5.17 2.98 11.40

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Atlanta, GA (Metropolitan Area) Knoxville, TN 30.01 16.42 43.59 3.33 2.29 6.09

Appleton, WI Dallas/Fort Worth, TX 14.15 6.16 24.80 7.07 4.03 16.23

Appleton, WI Atlanta, GA (Metropolitan Area) 16.11 7.54 25.93 6.21 3.86 13.27

Appleton, WI Phoenix, AZ 13.11 5.97 25.91 7.63 3.86 16.75

Appleton, WI Boston, MA (Metropolitan Area) 7.17 3.11 14.60 13.94 6.85 32.16

Appleton, WI Washington, DC (Metropolitan Area) 11.95 4.73 22.20 8.37 4.50 21.16

Appleton, WI Minneapolis/St. Paul, MN 12.73 5.72 23.64 7.86 4.23 17.48

Appleton, WI New York City, NY (Metropolitan Area) 10.97 4.17 19.15 9.12 5.22 23.96

Appleton, WI San Francisco, CA (Metropolitan Area) 11.62 5.16 19.59 8.61 5.10 19.40

Appleton, WI Los Angeles, CA (Metropolitan Area) 11.58 4.79 22.82 8.64 4.38 20.89

Austin, TX Colorado Springs, CO 14.45 6.18 26.14 6.92 3.83 16.19

Austin, TX Dallas/Fort Worth, TX 13.49 5.54 22.84 7.41 4.38 18.04

Austin, TX Pittsburgh, PA 6.37 2.60 13.07 15.70 7.65 38.46

Austin, TX Huntsville, AL 13.99 5.82 26.29 7.15 3.80 17.19

Austin, TX Denver, CO 8.85 4.43 14.78 11.30 6.76 22.57

Austin, TX Tucson, AZ 13.50 6.18 22.53 7.41 4.44 16.19

Austin, TX Phoenix, AZ 5.54 2.37 9.77 18.05 10.24 42.27

Austin, TX Hartford, CT 7.00 2.85 13.81 14.29 7.24 35.04

Austin, TX Seattle, WA 8.29 3.62 15.50 12.06 6.45 27.63

Austin, TX Birmingham, AL 11.75 5.31 20.80 8.51 4.81 18.82

Austin, TX El Paso, TX 7.99 3.55 14.28 12.51 7.00 28.18

Austin, TX Cleveland, OH (Metropolitan Area) 11.06 4.42 21.14 9.04 4.73 22.62

Austin, TX Nashville, TN 7.31 3.12 15.03 13.67 6.65 32.10

Austin, TX Boise, ID 8.52 3.25 16.29 11.73 6.14 30.77

Austin, TX Boston, MA (Metropolitan Area) 4.36 1.61 9.45 22.95 10.58 62.20

Austin, TX Baton Rouge, LA 11.81 4.44 22.36 8.46 4.47 22.51

Austin, TX Buffalo, NY 20.26 10.73 29.86 4.94 3.35 9.32

Austin, TX Washington, DC (Metropolitan Area) 3.67 1.73 8.34 27.27 11.99 57.93

Austin, TX Chicago, IL 7.64 3.38 13.60 13.09 7.35 29.58

Austin, TX Charlotte, NC 16.76 7.96 26.17 5.97 3.82 12.56

Austin, TX Columbus, OH 10.15 4.39 17.98 9.86 5.56 22.77

Austin, TX St. Louis, MO 19.84 10.21 33.40 5.04 2.99 9.80

Austin, TX Jacksonville, FL 18.31 8.92 30.67 5.46 3.26 11.22

Austin, TX Detroit, MI 6.04 1.97 10.10 16.56 9.90 50.84

Austin, TX Des Moines, IA 15.21 6.52 27.26 6.57 3.67 15.33

Austin, TX Houston, TX 21.20 9.72 36.59 4.72 2.73 10.28

Austin, TX Orlando, FL 6.62 3.05 11.71 15.10 8.54 32.82

Austin, TX Minneapolis/St. Paul, MN 5.34 2.14 10.11 18.74 9.89 46.84

Austin, TX New York City, NY (Metropolitan Area) 10.53 5.60 17.60 9.49 5.68 17.86

Austin, TX Fort Myers, FL 13.89 6.42 26.76 7.20 3.74 15.57

Austin, TX Greenville/Spartanburg, SC 19.64 7.97 32.98 5.09 3.03 12.54

Austin, TX Greensboro/High Point, NC 10.16 4.02 21.12 9.84 4.74 24.88

Austin, TX Harrisburg, PA 14.78 6.00 26.37 6.77 3.79 16.67

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Austin, TX Harlingen/San Benito, TX 17.16 6.91 31.07 5.83 3.22 14.47

Austin, TX Las Vegas, NV 4.27 1.80 8.36 23.42 11.96 55.47

Austin, TX Indianapolis, IN 5.63 2.60 11.44 17.76 8.74 38.44

Austin, TX San Francisco, CA (Metropolitan Area) 3.95 1.53 8.33 25.29 12.01 65.27

Austin, TX Miami, FL (Metropolitan Area) 8.36 3.53 15.18 11.96 6.59 28.34

Austin, TX Los Angeles, CA (Metropolitan Area) 5.80 2.16 9.45 17.25 10.59 46.31

Austin, TX Little Rock, AR 10.88 3.83 19.86 9.19 5.04 26.10

Austin, TX Lubbock, TX 11.05 4.13 21.61 9.05 4.63 24.19

Austin, TX Lexington, KY 15.85 6.13 30.17 6.31 3.31 16.31

Austin, TX Louisville, KY 8.49 3.86 16.26 11.78 6.15 25.93

Austin, TX Cincinnati, OH 9.77 4.32 18.12 10.23 5.52 23.16

Austin, TX Midland/Odessa, TX 17.57 7.70 30.04 5.69 3.33 12.99

Austin, TX Sacramento, CA 9.28 3.68 15.79 10.78 6.33 27.14

Austin, TX Tampa, FL (Metropolitan Area) 7.37 3.25 12.47 13.57 8.02 30.73

Austin, TX Kansas City, MO 10.92 4.23 18.73 9.15 5.34 23.64

Austin, TX Memphis, TN 30.99 13.60 51.88 3.23 1.93 7.35

Austin, TX Omaha, NE 10.82 4.89 20.03 9.24 4.99 20.44

Austin, TX Milwaukee, WI 11.53 4.80 22.10 8.68 4.52 20.85

Austin, TX Madison, WI 13.66 6.09 24.01 7.32 4.16 16.43

Austin, TX New Orleans, LA 14.34 6.25 26.18 6.97 3.82 16.01

Austin, TX San Diego, CA 6.91 2.85 12.96 14.48 7.72 35.09

Austin, TX Norfolk, VA (Metropolitan Area) 25.47 13.16 37.82 3.93 2.64 7.60

Austin, TX Oklahoma City, OK 12.81 4.71 24.13 7.81 4.14 21.22

Austin, TX West Palm Beach/Palm Beach, FL 12.65 4.57 24.82 7.91 4.03 21.87

Austin, TX Portland, OR 4.66 2.22 8.31 21.48 12.04 45.13

Austin, TX Philadelphia, PA 12.72 5.93 21.70 7.86 4.61 16.86

Austin, TX Raleigh/Durham, NC 4.23 2.31 9.08 23.67 11.01 43.23

Austin, TX Richmond, VA 13.82 6.50 22.14 7.23 4.52 15.39

Austin, TX Reno, NV 14.18 5.92 26.74 7.05 3.74 16.90

Austin, TX Rochester, NY 10.00 4.39 20.07 10.00 4.98 22.79

Austin, TX Salt Lake City, UT 14.56 6.42 27.22 6.87 3.67 15.57

Austin, TX Tulsa, OK 14.59 6.33 26.01 6.85 3.84 15.81

Austin, TX Syracuse, NY 12.56 4.69 22.53 7.96 4.44 21.30

Austin, TX Knoxville, TN 10.68 4.20 18.88 9.36 5.30 23.81

Asheville, NC Dallas/Fort Worth, TX 14.93 6.41 26.57 6.70 3.76 15.61

Asheville, NC Boston, MA (Metropolitan Area) 11.23 5.43 21.02 8.91 4.76 18.42

Asheville, NC Washington, DC (Metropolitan Area) 11.27 4.84 19.48 8.87 5.13 20.66

Asheville, NC Chicago, IL 12.44 5.31 24.65 8.04 4.06 18.84

Asheville, NC Orlando, FL 29.42 16.18 42.28 3.40 2.37 6.18

Asheville, NC New York City, NY (Metropolitan Area) 16.00 6.94 27.92 6.25 3.58 14.41

Asheville, NC San Francisco, CA (Metropolitan Area) 16.51 7.14 27.63 6.06 3.62 14.01

Asheville, NC Miami, FL (Metropolitan Area) 18.74 8.55 30.76 5.34 3.25 11.69

Asheville, NC Los Angeles, CA (Metropolitan Area) 12.95 5.39 22.54 7.72 4.44 18.55

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Asheville, NC Tampa, FL (Metropolitan Area) 15.81 7.36 27.77 6.32 3.60 13.59

Asheville, NC Philadelphia, PA 14.03 6.08 23.82 7.13 4.20 16.45

Scranton/Wilkes-Barre, PA Tampa, FL (Metropolitan Area) 27.71 15.37 41.07 3.61 2.43 6.51

Tucson, AZ Washington, DC (Metropolitan Area) 6.78 2.97 12.05 14.75 8.30 33.67

Tucson, AZ Tulsa, OK 11.80 4.80 21.83 8.47 4.58 20.83

Phoenix, AZ Pittsburgh, PA 12.20 5.65 21.52 8.19 4.65 17.70

Phoenix, AZ Seattle, WA 5.44 2.36 10.89 18.37 9.18 42.35

Phoenix, AZ Washington, DC (Metropolitan Area) 5.03 2.29 9.87 19.90 10.14 43.68

Phoenix, AZ Wichita, KS 8.51 4.13 14.96 11.76 6.69 24.20

Phoenix, AZ St. Louis, MO 6.25 2.71 11.36 15.99 8.80 36.87

Phoenix, AZ Sioux Falls, SD 18.97 6.93 31.91 5.27 3.13 14.43

Phoenix, AZ Spokane, WA 6.40 2.56 11.46 15.61 8.72 39.02

Phoenix, AZ San Francisco, CA (Metropolitan Area) 5.16 2.57 10.21 19.38 9.80 38.98

Phoenix, AZ Sacramento, CA 9.55 4.27 15.79 10.48 6.33 23.43

Phoenix, AZ Tampa, FL (Metropolitan Area) 6.75 3.11 12.18 14.81 8.21 32.12

Phoenix, AZ San Antonio, TX 5.86 2.44 10.67 17.06 9.37 40.98

Phoenix, AZ Quad Cities, IL (Metropolitan Area) 16.47 7.36 29.82 6.07 3.35 13.59

Phoenix, AZ San Diego, CA 12.24 5.40 22.79 8.17 4.39 18.53

Phoenix, AZ West Palm Beach/Palm Beach, FL 8.73 3.44 16.39 11.45 6.10 29.11

Phoenix, AZ Portland, OR 5.39 2.06 10.89 18.56 9.18 48.56

Phoenix, AZ Portland, ME 7.77 3.29 14.95 12.87 6.69 30.39

Phoenix, AZ Rapid City, SD 11.12 4.21 18.48 9.00 5.41 23.77

Phoenix, AZ Raleigh/Durham, NC 7.71 3.01 13.01 12.97 7.69 33.26

Phoenix, AZ Richmond, VA 10.23 4.26 18.03 9.78 5.55 23.46

Phoenix, AZ Reno, NV 6.30 2.57 10.85 15.88 9.22 38.91

Phoenix, AZ Roanoke, VA 21.45 10.27 35.77 4.66 2.80 9.74

Phoenix, AZ Rochester, NY 16.13 7.27 28.12 6.20 3.56 13.76

Phoenix, AZ Salt Lake City, UT 4.83 1.89 8.13 20.72 12.31 53.05

Phoenix, AZ Tulsa, OK 7.97 2.94 13.85 12.55 7.22 34.05

Phoenix, AZ Savannah, GA 10.39 4.10 20.48 9.63 4.88 24.39

Phoenix, AZ South Bend, IN 15.51 6.71 29.20 6.45 3.42 14.90

Phoenix, AZ Springfield, MO 12.96 5.05 21.82 7.71 4.58 19.81

Phoenix, AZ Syracuse, NY 17.70 8.11 30.06 5.65 3.33 12.33

Kalamazoo, MI Washington, DC (Metropolitan Area) 18.58 9.07 29.96 5.38 3.34 11.03

Kalamazoo, MI New York City, NY (Metropolitan Area) 13.81 6.39 23.53 7.24 4.25 15.65

Kalamazoo, MI Los Angeles, CA (Metropolitan Area) 11.30 4.53 21.80 8.85 4.59 22.09

Shreveport, LA Washington, DC (Metropolitan Area) 12.65 4.95 23.04 7.91 4.34 20.20

Shreveport, LA Tampa, FL (Metropolitan Area) 14.48 5.42 25.73 6.91 3.89 18.46

Hartford, CT Pittsburgh, PA 14.67 6.91 28.47 6.82 3.51 14.48

Hartford, CT Tucson, AZ 11.00 4.54 20.55 9.09 4.87 22.05

Hartford, CT Phoenix, AZ 8.11 3.43 14.38 12.33 6.96 29.13

Hartford, CT Seattle, WA 9.20 4.63 16.02 10.86 6.24 21.60

Hartford, CT Nashville, TN 14.05 6.89 24.82 7.12 4.03 14.52

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Hartford, CT Washington, DC (Metropolitan Area) 9.58 4.33 17.77 10.44 5.63 23.10

Hartford, CT St. Louis, MO 9.95 4.08 19.91 10.05 5.02 24.52

Hartford, CT Myrtle Beach, SC 25.74 12.73 39.10 3.89 2.56 7.85

Hartford, CT Jacksonville, FL 10.08 3.92 17.79 9.92 5.62 25.50

Hartford, CT Houston, TX 8.64 3.46 16.73 11.57 5.98 28.89

Hartford, CT Orlando, FL 11.62 5.29 21.12 8.61 4.73 18.92

Hartford, CT Minneapolis/St. Paul, MN 10.48 5.05 17.20 9.54 5.82 19.82

Hartford, CT Las Vegas, NV 5.97 2.12 12.82 16.74 7.80 47.11

Hartford, CT Wilmington, NC 13.15 5.42 23.52 7.61 4.25 18.46

Hartford, CT Indianapolis, IN 12.90 4.97 24.54 7.75 4.08 20.13

Hartford, CT San Francisco, CA (Metropolitan Area) 4.86 2.21 9.26 20.59 10.80 45.17

Hartford, CT Miami, FL (Metropolitan Area) 17.25 7.59 28.96 5.80 3.45 13.17

Hartford, CT Los Angeles, CA (Metropolitan Area) 9.63 4.19 17.32 10.39 5.77 23.87

Hartford, CT Little Rock, AR 11.30 4.67 20.58 8.85 4.86 21.41

Hartford, CT Louisville, KY 11.36 4.70 20.67 8.80 4.84 21.29

Hartford, CT Sacramento, CA 9.50 3.88 18.74 10.53 5.34 25.77

Hartford, CT Tampa, FL (Metropolitan Area) 16.35 8.07 26.90 6.12 3.72 12.40

Hartford, CT Kansas City, MO 8.85 3.71 15.56 11.30 6.43 26.97

Hartford, CT San Antonio, TX 19.28 8.29 31.76 5.19 3.15 12.07

Hartford, CT Memphis, TN 8.12 3.45 14.88 12.32 6.72 29.01

Hartford, CT Omaha, NE 5.81 2.43 10.60 17.20 9.43 41.13

Hartford, CT Milwaukee, WI 21.39 9.62 39.02 4.68 2.56 10.40

Hartford, CT Madison, WI 10.97 4.79 19.93 9.12 5.02 20.89

Hartford, CT New Orleans, LA 11.85 4.84 23.40 8.44 4.27 20.66

Hartford, CT San Diego, CA 7.22 2.88 13.68 13.85 7.31 34.69

Hartford, CT Norfolk, VA (Metropolitan Area) 22.10 12.33 30.49 4.53 3.28 8.11

Hartford, CT Pensacola, FL 13.50 5.60 22.75 7.41 4.40 17.86

Hartford, CT Oklahoma City, OK 8.28 3.50 16.25 12.08 6.15 28.58

Hartford, CT West Palm Beach/Palm Beach, FL 18.88 8.52 32.37 5.30 3.09 11.74

Hartford, CT Portland, OR 5.53 1.70 11.02 18.07 9.07 58.90

Hartford, CT Philadelphia, PA 22.09 13.16 32.05 4.53 3.12 7.60

Hartford, CT Raleigh/Durham, NC 10.47 4.51 19.27 9.55 5.19 22.18

Hartford, CT Richmond, VA 8.82 3.63 17.77 11.34 5.63 27.57

Hartford, CT Reno, NV 14.64 5.65 26.79 6.83 3.73 17.70

Hartford, CT Salt Lake City, UT 8.51 3.70 15.95 11.76 6.27 27.07

Hartford, CT Tulsa, OK 6.35 3.27 11.51 15.74 8.69 30.61

Hartford, CT Savannah, GA 19.56 9.39 30.81 5.11 3.25 10.65

Hartford, CT Sarasota/Bradenton, FL 23.76 10.37 39.18 4.21 2.55 9.64

Hartford, CT Knoxville, TN 8.17 3.28 15.28 12.24 6.55 30.46

Seattle, WA Walla Walla, WA 14.34 6.48 27.19 6.97 3.68 15.43

Seattle, WA Tucson, AZ 5.41 2.53 10.67 18.48 9.37 39.60

Seattle, WA Washington, DC (Metropolitan Area) 4.53 1.59 8.74 22.10 11.44 62.79

Seattle, WA Wichita, KS 8.70 4.34 16.18 11.50 6.18 23.02

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Seattle, WA St. Louis, MO 4.05 1.77 8.54 24.72 11.72 56.58

Seattle, WA Wenatchee, WA 11.68 4.94 26.32 8.56 3.80 20.26

Seattle, WA Sioux Falls, SD 15.59 6.67 26.29 6.41 3.80 14.98

Seattle, WA Spokane, WA 15.08 6.33 27.52 6.63 3.63 15.80

Seattle, WA Tampa, FL (Metropolitan Area) 8.70 3.76 16.74 11.50 5.97 26.60

Seattle, WA West Palm Beach/Palm Beach, FL 14.25 6.29 24.86 7.02 4.02 15.90

Seattle, WA Tulsa, OK 9.37 3.83 17.20 10.68 5.81 26.10

Seattle, WA Springfield, MO 18.04 7.69 30.90 5.54 3.24 13.00

Seattle, WA Sun Valley/Hailey/Ketchum, ID 15.88 6.25 29.17 6.30 3.43 16.01

Seattle, WA Syracuse, NY 15.51 7.19 25.13 6.45 3.98 13.92

Seattle, WA Yakima, WA 22.14 9.45 35.82 4.52 2.79 10.59

Bakersfield, CA Dallas/Fort Worth, TX 14.09 6.15 25.08 7.10 3.99 16.26

Bakersfield, CA Houston, TX 19.17 8.22 33.69 5.22 2.97 12.17

Mobile, AL Washington, DC (Metropolitan Area) 14.74 6.39 23.60 6.78 4.24 15.65

Mobile, AL St. Louis, MO 17.79 7.59 28.89 5.62 3.46 13.18

Mobile, AL New York City, NY (Metropolitan Area) 12.36 5.86 20.95 8.09 4.77 17.07

Mobile, AL San Francisco, CA (Metropolitan Area) 18.42 8.08 31.83 5.43 3.14 12.37

Mobile, AL Norfolk, VA (Metropolitan Area) 11.85 4.57 20.57 8.44 4.86 21.89

Mobile, AL Philadelphia, PA 13.39 5.48 23.15 7.47 4.32 18.25

Bangor, ME Washington, DC (Metropolitan Area) 14.80 7.13 25.65 6.76 3.90 14.03

Bangor, ME Orlando, FL 16.44 6.19 26.68 6.08 3.75 16.16

Bangor, ME Miami, FL (Metropolitan Area) 21.60 9.91 36.50 4.63 2.74 10.09

Bangor, ME Tampa, FL (Metropolitan Area) 16.23 6.95 27.79 6.16 3.60 14.39

Birmingham, AL Dallas/Fort Worth, TX 20.06 10.94 30.15 4.99 3.32 9.14

Birmingham, AL Pittsburgh, PA 15.33 6.89 26.29 6.52 3.80 14.50

Birmingham, AL Denver, CO 15.34 7.37 26.42 6.52 3.79 13.56

Birmingham, AL Phoenix, AZ 9.20 4.01 17.30 10.87 5.78 24.93

Birmingham, AL Hartford, CT 17.41 8.24 26.53 5.75 3.77 12.14

Birmingham, AL Seattle, WA 10.39 4.44 18.70 9.62 5.35 22.53

Birmingham, AL El Paso, TX 12.04 4.67 24.20 8.30 4.13 21.39

Birmingham, AL Cleveland, OH (Metropolitan Area) 13.65 5.95 23.92 7.32 4.18 16.81

Birmingham, AL Boston, MA (Metropolitan Area) 10.42 4.86 18.57 9.60 5.38 20.56

Birmingham, AL Buffalo, NY 12.23 3.75 22.35 8.18 4.48 26.69

Birmingham, AL Washington, DC (Metropolitan Area) 11.37 5.28 21.39 8.80 4.67 18.92

Birmingham, AL Chicago, IL 15.50 7.28 27.52 6.45 3.63 13.74

Birmingham, AL Charleston, SC 8.34 3.40 16.05 11.99 6.23 29.41

Birmingham, AL Charlotte, NC 11.74 5.40 18.74 8.52 5.33 18.52

Birmingham, AL Columbus, OH 10.27 3.49 18.47 9.74 5.41 28.68

Birmingham, AL St. Louis, MO 25.07 12.61 39.35 3.99 2.54 7.93

Birmingham, AL Jacksonville, FL 17.80 7.73 29.61 5.62 3.38 12.94

Birmingham, AL Detroit, MI 16.85 7.29 35.56 5.94 2.81 13.73

Birmingham, AL Houston, TX 20.62 8.57 38.63 4.85 2.59 11.66

Birmingham, AL Orlando, FL 17.99 7.82 29.99 5.56 3.33 12.78

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Birmingham, AL Minneapolis/St. Paul, MN 14.19 6.26 24.34 7.05 4.11 15.99

Birmingham, AL New York City, NY (Metropolitan Area) 13.26 5.12 25.03 7.54 3.99 19.54

Birmingham, AL Greensboro/High Point, NC 12.85 5.07 22.49 7.78 4.45 19.74

Birmingham, AL Las Vegas, NV 6.45 2.73 13.41 15.49 7.46 36.61

Birmingham, AL Indianapolis, IN 12.12 5.95 20.87 8.25 4.79 16.80

Birmingham, AL San Francisco, CA (Metropolitan Area) 5.31 2.58 10.37 18.83 9.64 38.75

Birmingham, AL Miami, FL (Metropolitan Area) 7.99 2.90 15.74 12.51 6.35 34.52

Birmingham, AL Los Angeles, CA (Metropolitan Area) 9.23 3.52 19.16 10.84 5.22 28.41

Birmingham, AL Louisville, KY 20.37 8.74 35.42 4.91 2.82 11.44

Birmingham, AL Cincinnati, OH 10.80 4.92 17.63 9.26 5.67 20.31

Birmingham, AL Sacramento, CA 10.17 4.12 20.00 9.83 5.00 24.28

Birmingham, AL Tampa, FL (Metropolitan Area) 9.27 4.33 17.43 10.79 5.74 23.09

Birmingham, AL Kansas City, MO 10.70 4.00 22.94 9.35 4.36 25.01

Birmingham, AL San Antonio, TX 8.95 3.35 15.68 11.17 6.38 29.87

Birmingham, AL Omaha, NE 17.33 6.77 28.81 5.77 3.47 14.76

Birmingham, AL Milwaukee, WI 13.99 6.00 23.96 7.15 4.17 16.65

Birmingham, AL New Orleans, LA 27.53 12.27 45.72 3.63 2.19 8.15

Birmingham, AL San Diego, CA 11.62 5.20 20.97 8.61 4.77 19.23

Birmingham, AL Norfolk, VA (Metropolitan Area) 30.01 15.01 44.35 3.33 2.25 6.66

Birmingham, AL Oklahoma City, OK 17.03 6.78 29.84 5.87 3.35 14.74

Birmingham, AL West Palm Beach/Palm Beach, FL 14.50 6.40 25.39 6.90 3.94 15.62

Birmingham, AL Portland, OR 11.71 5.05 20.69 8.54 4.83 19.79

Birmingham, AL Philadelphia, PA 9.71 4.06 18.16 10.30 5.51 24.65

Birmingham, AL Raleigh/Durham, NC 12.37 5.17 24.31 8.08 4.11 19.33

Birmingham, AL Richmond, VA 9.91 4.23 17.72 10.09 5.64 23.62

Birmingham, AL Salt Lake City, UT 12.12 5.21 21.15 8.25 4.73 19.18

Birmingham, AL Tulsa, OK 7.17 3.03 15.08 13.94 6.63 33.03

El Paso, TX Huntsville, AL 11.97 5.08 22.78 8.36 4.39 19.69

El Paso, TX Phoenix, AZ 15.30 6.49 27.78 6.54 3.60 15.40

El Paso, TX Seattle, WA 7.68 3.10 15.45 13.02 6.47 32.28

El Paso, TX Nashville, TN 14.05 5.84 27.13 7.12 3.69 17.12

El Paso, TX Washington, DC (Metropolitan Area) 6.55 2.68 13.12 15.26 7.63 37.37

El Paso, TX St. Louis, MO 11.75 5.23 22.30 8.51 4.48 19.13

El Paso, TX Jacksonville, FL 18.10 8.03 29.95 5.52 3.34 12.45

El Paso, TX Houston, TX 6.11 2.52 11.56 16.36 8.65 39.69

El Paso, TX Orlando, FL 9.88 4.24 17.87 10.13 5.59 23.57

El Paso, TX Minneapolis/St. Paul, MN 13.77 6.57 24.59 7.26 4.07 15.22

El Paso, TX New York City, NY (Metropolitan Area) 9.88 4.29 17.95 10.12 5.57 23.32

El Paso, TX Harlingen/San Benito, TX 9.84 4.08 18.76 10.16 5.33 24.49

El Paso, TX Las Vegas, NV 13.24 6.00 22.23 7.55 4.50 16.68

El Paso, TX Indianapolis, IN 12.05 5.01 21.94 8.30 4.56 19.96

El Paso, TX San Francisco, CA (Metropolitan Area) 9.50 4.32 16.43 10.52 6.09 23.14

El Paso, TX Miami, FL (Metropolitan Area) 11.12 5.08 19.01 8.99 5.26 19.67

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

El Paso, TX Los Angeles, CA (Metropolitan Area) 9.56 3.83 17.16 10.46 5.83 26.13

El Paso, TX Little Rock, AR 10.60 4.73 20.48 9.43 4.88 21.12

El Paso, TX Louisville, KY 15.30 6.24 27.41 6.54 3.65 16.02

El Paso, TX Sacramento, CA 8.38 3.61 19.62 11.94 5.10 27.70

El Paso, TX Tampa, FL (Metropolitan Area) 11.63 4.88 20.17 8.60 4.96 20.49

El Paso, TX Kansas City, MO 8.83 3.86 15.79 11.32 6.34 25.88

El Paso, TX San Antonio, TX 6.65 2.74 12.68 15.04 7.89 36.48

El Paso, TX Mission/McAllen/Edinburg, TX 12.15 5.03 23.21 8.23 4.31 19.88

El Paso, TX Omaha, NE 12.75 5.77 21.90 7.84 4.57 17.33

El Paso, TX New Orleans, LA 17.33 7.16 30.98 5.77 3.23 13.96

El Paso, TX San Diego, CA 13.15 5.88 23.10 7.60 4.33 16.99

El Paso, TX Norfolk, VA (Metropolitan Area) 15.41 6.22 27.80 6.49 3.60 16.07

El Paso, TX Oklahoma City, OK 18.48 7.36 33.35 5.41 3.00 13.58

El Paso, TX Portland, OR 14.66 6.31 24.94 6.82 4.01 15.84

El Paso, TX Philadelphia, PA 12.22 5.25 21.87 8.19 4.57 19.04

El Paso, TX Raleigh/Durham, NC 9.25 3.99 17.47 10.81 5.72 25.09

El Paso, TX Reno, NV 15.83 6.66 29.46 6.32 3.39 15.01

El Paso, TX Salt Lake City, UT 21.60 9.81 40.26 4.63 2.49 10.19

El Paso, TX Tulsa, OK 13.76 5.62 26.19 7.27 3.82 17.79

Billings, MT Dallas/Fort Worth, TX 14.35 6.81 24.42 6.97 4.10 14.69

Billings, MT Denver, CO 7.94 3.39 16.75 12.60 5.97 29.50

Billings, MT Phoenix, AZ 9.70 4.07 18.41 10.31 5.43 24.58

Billings, MT Seattle, WA 10.77 4.37 19.61 9.29 5.10 22.88

Billings, MT Washington, DC (Metropolitan Area) 10.68 4.03 19.09 9.37 5.24 24.84

Billings, MT Chicago, IL 8.05 2.98 15.19 12.42 6.58 33.51

Billings, MT Houston, TX 10.23 4.57 18.22 9.78 5.49 21.89

Billings, MT Orlando, FL 10.10 4.07 18.08 9.90 5.53 24.58

Billings, MT Minneapolis/St. Paul, MN 9.19 4.04 18.26 10.88 5.48 24.77

Billings, MT New York City, NY (Metropolitan Area) 10.07 4.15 19.31 9.93 5.18 24.07

Billings, MT Las Vegas, NV 11.62 4.92 21.38 8.61 4.68 20.33

Billings, MT San Francisco, CA (Metropolitan Area) 12.35 5.73 21.78 8.10 4.59 17.44

Billings, MT Los Angeles, CA (Metropolitan Area) 12.89 5.87 21.91 7.76 4.56 17.04

Billings, MT Sacramento, CA 9.32 3.84 17.88 10.73 5.59 26.03

Billings, MT San Diego, CA 13.05 6.19 22.75 7.66 4.40 16.16

Billings, MT Portland, OR 14.01 6.26 24.32 7.14 4.11 15.97

Bismarck/Mandan, ND Dallas/Fort Worth, TX 12.04 4.88 21.29 8.30 4.70 20.48

Bismarck/Mandan, ND Phoenix, AZ 14.46 6.43 26.09 6.91 3.83 15.54

Bismarck/Mandan, ND Washington, DC (Metropolitan Area) 14.36 6.63 24.45 6.96 4.09 15.07

Bismarck/Mandan, ND Chicago, IL 10.44 3.97 18.63 9.58 5.37 25.21

Bismarck/Mandan, ND Minneapolis/St. Paul, MN 12.59 6.27 20.52 7.95 4.87 15.96

Bismarck/Mandan, ND Los Angeles, CA (Metropolitan Area) 11.87 5.09 22.85 8.42 4.38 19.63

Cleveland, OH (Metropolitan Area) Colorado Springs, CO 16.54 7.52 28.09 6.05 3.56 13.30

Cleveland, OH (Metropolitan Area) Dallas/Fort Worth, TX 8.74 3.72 14.87 11.44 6.72 26.87

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Cleveland, OH (Metropolitan Area) Huntsville, AL 14.69 6.17 26.06 6.81 3.84 16.22

Cleveland, OH (Metropolitan Area) Denver, CO 8.97 4.00 16.01 11.15 6.24 24.99

Cleveland, OH (Metropolitan Area) Tucson, AZ 11.53 5.26 21.95 8.67 4.56 19.02

Cleveland, OH (Metropolitan Area) Phoenix, AZ 7.52 2.90 13.60 13.30 7.35 34.43

Cleveland, OH (Metropolitan Area) Hartford, CT 19.84 7.40 39.90 5.04 2.51 13.52

Cleveland, OH (Metropolitan Area) Seattle, WA 7.36 2.64 12.82 13.60 7.80 37.84

Cleveland, OH (Metropolitan Area) El Paso, TX 7.00 2.57 14.33 14.28 6.98 38.93

Cleveland, OH (Metropolitan Area) Nashville, TN 13.76 5.63 25.86 7.27 3.87 17.78

Cleveland, OH (Metropolitan Area) Washington, DC (Metropolitan Area) 9.11 3.79 18.37 10.98 5.44 26.35

Cleveland, OH (Metropolitan Area) Columbia, SC 19.45 9.51 32.37 5.14 3.09 10.52

Cleveland, OH (Metropolitan Area) Wichita, KS 8.37 3.71 16.02 11.95 6.24 26.95

Cleveland, OH (Metropolitan Area) St. Louis, MO 18.89 7.98 32.18 5.29 3.11 12.53

Cleveland, OH (Metropolitan Area) Myrtle Beach, SC 13.54 5.91 24.07 7.38 4.15 16.92

Cleveland, OH (Metropolitan Area) Jacksonville, FL 16.39 6.56 27.81 6.10 3.60 15.25

Cleveland, OH (Metropolitan Area) Detroit, MI 18.42 8.40 32.33 5.43 3.09 11.91

Cleveland, OH (Metropolitan Area) Des Moines, IA 8.29 2.94 13.37 12.07 7.48 33.98

Cleveland, OH (Metropolitan Area) Houston, TX 6.87 2.89 11.89 14.56 8.41 34.66

Cleveland, OH (Metropolitan Area) Orlando, FL 10.91 4.28 20.04 9.17 4.99 23.38

Cleveland, OH (Metropolitan Area) Minneapolis/St. Paul, MN 12.10 5.14 21.49 8.27 4.65 19.45

Cleveland, OH (Metropolitan Area) New York City, NY (Metropolitan Area) 7.82 3.73 14.04 12.79 7.12 26.81

Cleveland, OH (Metropolitan Area) Fort Myers, FL 13.71 6.21 25.31 7.30 3.95 16.11

Cleveland, OH (Metropolitan Area) Greenville/Spartanburg, SC 27.13 11.17 49.48 3.69 2.02 8.95

Cleveland, OH (Metropolitan Area) Greensboro/High Point, NC 7.45 3.76 14.04 13.42 7.12 26.62

Cleveland, OH (Metropolitan Area) Las Vegas, NV 9.43 4.14 17.26 10.60 5.79 24.14

Cleveland, OH (Metropolitan Area) Indianapolis, IN 9.92 4.36 19.02 10.08 5.26 22.95

Cleveland, OH (Metropolitan Area) Jackson/Vicksburg, MS 12.29 5.75 23.21 8.13 4.31 17.38

Cleveland, OH (Metropolitan Area) San Francisco, CA (Metropolitan Area) 6.03 2.99 11.72 16.57 8.53 33.40

Cleveland, OH (Metropolitan Area) Miami, FL (Metropolitan Area) 11.36 5.22 19.15 8.80 5.22 19.14

Cleveland, OH (Metropolitan Area) Los Angeles, CA (Metropolitan Area) 6.62 2.95 11.67 15.11 8.57 33.95

Cleveland, OH (Metropolitan Area) Little Rock, AR 15.38 6.87 30.00 6.50 3.33 14.56

Cleveland, OH (Metropolitan Area) Sacramento, CA 9.21 4.09 16.92 10.85 5.91 24.47

Cleveland, OH (Metropolitan Area) Tampa, FL (Metropolitan Area) 6.11 2.75 10.87 16.35 9.20 36.38

Cleveland, OH (Metropolitan Area) Kansas City, MO 24.06 9.87 44.16 4.16 2.26 10.14

Cleveland, OH (Metropolitan Area) San Antonio, TX 13.94 6.41 23.69 7.17 4.22 15.61

Cleveland, OH (Metropolitan Area) Memphis, TN 10.46 4.69 21.21 9.56 4.72 21.33

Cleveland, OH (Metropolitan Area) Omaha, NE 12.62 4.72 23.10 7.92 4.33 21.21

Cleveland, OH (Metropolitan Area) Milwaukee, WI 16.30 6.81 28.06 6.13 3.56 14.68

Cleveland, OH (Metropolitan Area) New Orleans, LA 15.72 6.65 29.90 6.36 3.35 15.04

Cleveland, OH (Metropolitan Area) San Diego, CA 6.12 2.27 12.84 16.34 7.79 44.05

Cleveland, OH (Metropolitan Area) Norfolk, VA (Metropolitan Area) 20.70 10.57 33.80 4.83 2.96 9.46

Cleveland, OH (Metropolitan Area) Pensacola, FL 14.86 5.98 27.35 6.73 3.66 16.73

Cleveland, OH (Metropolitan Area) Oklahoma City, OK 14.29 6.76 26.68 7.00 3.75 14.80

Cleveland, OH (Metropolitan Area) West Palm Beach/Palm Beach, FL 18.74 8.22 32.97 5.34 3.03 12.16

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Cleveland, OH (Metropolitan Area) Portland, OR 6.23 2.32 11.68 16.06 8.56 43.08

Cleveland, OH (Metropolitan Area) Philadelphia, PA 9.97 4.08 18.28 10.03 5.47 24.53

Cleveland, OH (Metropolitan Area) Portland, ME 14.92 5.72 28.77 6.70 3.48 17.48

Cleveland, OH (Metropolitan Area) Raleigh/Durham, NC 20.87 9.19 36.94 4.79 2.71 10.88

Cleveland, OH (Metropolitan Area) Richmond, VA 27.47 11.96 45.30 3.64 2.21 8.36

Cleveland, OH (Metropolitan Area) Reno, NV 10.35 3.54 20.28 9.66 4.93 28.23

Cleveland, OH (Metropolitan Area) Salt Lake City, UT 9.98 4.39 17.60 10.02 5.68 22.77

Cleveland, OH (Metropolitan Area) Tulsa, OK 10.35 3.90 19.37 9.66 5.16 25.62

Cleveland, OH (Metropolitan Area) Savannah, GA 15.20 6.78 26.45 6.58 3.78 14.75

Cleveland, OH (Metropolitan Area) Sarasota/Bradenton, FL 26.14 11.13 46.97 3.83 2.13 8.98

Cleveland, OH (Metropolitan Area) Knoxville, TN 28.37 12.22 46.86 3.52 2.13 8.19

Bellingham, WA Seattle, WA 20.11 9.50 33.67 4.97 2.97 10.52

Bellingham, WA San Francisco, CA (Metropolitan Area) 18.95 8.41 33.10 5.28 3.02 11.89

Bellingham, WA Los Angeles, CA (Metropolitan Area) 17.21 7.86 30.43 5.81 3.29 12.73

Bloomington/Normal, IL Dallas/Fort Worth, TX 11.35 5.28 20.28 8.81 4.93 18.94

Bloomington/Normal, IL Washington, DC (Metropolitan Area) 22.36 10.34 36.06 4.47 2.77 9.68

Bloomington/Normal, IL Orlando, FL 15.93 6.86 31.88 6.28 3.14 14.57

Bloomington/Normal, IL New York City, NY (Metropolitan Area) 19.11 8.69 33.97 5.23 2.94 11.51

Bloomington/Normal, IL Los Angeles, CA (Metropolitan Area) 18.95 7.62 34.15 5.28 2.93 13.13

Nashville, TN Pittsburgh, PA 11.28 5.67 19.35 8.87 5.17 17.63

Nashville, TN Tucson, AZ 14.68 6.30 25.30 6.81 3.95 15.87

Nashville, TN Phoenix, AZ 4.98 2.04 10.37 20.08 9.64 49.12

Nashville, TN Seattle, WA 3.53 1.66 9.18 28.31 10.89 60.33

Nashville, TN Washington, DC (Metropolitan Area) 10.71 4.64 18.72 9.34 5.34 21.54

Nashville, TN Wichita, KS 21.38 9.44 34.69 4.68 2.88 10.60

Nashville, TN St. Louis, MO 16.51 7.84 25.30 6.06 3.95 12.75

Nashville, TN Orlando, FL 16.09 7.79 28.64 6.21 3.49 12.84

Nashville, TN New York City, NY (Metropolitan Area) 5.10 2.06 10.19 19.62 9.84 48.52

Nashville, TN Spokane, WA 10.42 4.31 18.82 9.60 5.31 23.18

Nashville, TN San Francisco, CA (Metropolitan Area) 3.71 2.05 8.27 26.95 12.12 48.76

Nashville, TN Sacramento, CA 9.01 3.35 15.33 11.10 6.52 29.84

Nashville, TN Tampa, FL (Metropolitan Area) 5.42 2.66 10.66 18.44 9.38 37.55

Nashville, TN San Antonio, TX 5.87 2.28 11.84 17.03 8.44 43.83

Nashville, TN Omaha, NE 13.26 5.88 25.13 7.54 3.98 16.99

Nashville, TN New Orleans, LA 9.54 3.60 19.51 10.50 5.13 27.83

Nashville, TN San Diego, CA 2.96 1.45 5.74 33.82 17.41 69.09

Nashville, TN Norfolk, VA (Metropolitan Area) 23.68 12.07 36.45 4.22 2.74 8.28

Nashville, TN Oklahoma City, OK 9.08 4.02 16.02 11.01 6.24 24.88

Nashville, TN West Palm Beach/Palm Beach, FL 13.96 6.27 24.72 7.16 4.04 15.96

Nashville, TN Portland, OR 7.11 2.67 13.47 14.07 7.43 37.39

Nashville, TN Philadelphia, PA 8.57 3.86 14.72 11.67 6.80 25.91

Nashville, TN Raleigh/Durham, NC 11.34 5.30 19.25 8.82 5.19 18.86

Nashville, TN Richmond, VA 9.59 4.44 16.23 10.43 6.16 22.51

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Nashville, TN Reno, NV 12.83 5.54 22.46 7.80 4.45 18.06

Nashville, TN Rochester, NY 11.42 4.65 20.45 8.76 4.89 21.49

Nashville, TN Salt Lake City, UT 6.66 2.68 13.64 15.01 7.33 37.26

Nashville, TN Tulsa, OK 9.67 3.16 21.24 10.35 4.71 31.63

Nashville, TN Savannah, GA 16.38 7.41 27.98 6.11 3.57 13.49

Nashville, TN Syracuse, NY 15.14 6.94 25.12 6.60 3.98 14.41

Boise, ID Dallas/Fort Worth, TX 8.58 3.51 17.01 11.66 5.88 28.49

Boise, ID Denver, CO 7.76 3.37 12.94 12.89 7.73 29.65

Boise, ID Tucson, AZ 20.65 9.51 36.53 4.84 2.74 10.51

Boise, ID Phoenix, AZ 9.61 3.25 16.35 10.41 6.12 30.73

Boise, ID Seattle, WA 18.61 8.62 31.82 5.37 3.14 11.60

Boise, ID Cleveland, OH (Metropolitan Area) 16.23 6.92 28.19 6.16 3.55 14.44

Boise, ID Boston, MA (Metropolitan Area) 11.58 4.96 21.18 8.64 4.72 20.17

Boise, ID Washington, DC (Metropolitan Area) 14.30 6.57 25.99 6.99 3.85 15.23

Boise, ID Chicago, IL 6.18 2.13 11.43 16.17 8.75 47.02

Boise, ID St. Louis, MO 6.96 3.28 15.22 14.37 6.57 30.45

Boise, ID Detroit, MI 16.02 7.32 28.99 6.24 3.45 13.66

Boise, ID Houston, TX 9.63 3.69 17.93 10.39 5.58 27.13

Boise, ID Orlando, FL 14.01 5.93 26.23 7.14 3.81 16.86

Boise, ID Minneapolis/St. Paul, MN 15.35 6.84 26.96 6.51 3.71 14.63

Boise, ID New York City, NY (Metropolitan Area) 7.38 2.75 13.86 13.54 7.22 36.33

Boise, ID Spokane, WA 17.48 8.92 29.79 5.72 3.36 11.21

Boise, ID Las Vegas, NV 8.45 4.13 17.14 11.83 5.83 24.24

Boise, ID Indianapolis, IN 12.55 5.11 23.63 7.97 4.23 19.57

Boise, ID San Francisco, CA (Metropolitan Area) 11.16 4.64 20.84 8.96 4.80 21.55

Boise, ID Miami, FL (Metropolitan Area) 21.94 9.13 37.25 4.56 2.68 10.95

Boise, ID Los Angeles, CA (Metropolitan Area) 5.38 1.68 10.68 18.60 9.37 59.63

Boise, ID Lewiston, ID 18.48 8.11 31.70 5.41 3.15 12.34

Boise, ID Sacramento, CA 17.26 7.15 30.28 5.80 3.30 13.98

Boise, ID Tampa, FL (Metropolitan Area) 15.18 6.74 27.90 6.59 3.58 14.85

Boise, ID Kansas City, MO 9.88 4.36 18.07 10.12 5.53 22.92

Boise, ID San Antonio, TX 15.46 6.75 27.59 6.47 3.62 14.81

Boise, ID Omaha, NE 13.73 5.88 25.07 7.28 3.99 17.00

Boise, ID New Orleans, LA 13.57 5.47 24.82 7.37 4.03 18.30

Boise, ID San Diego, CA 11.58 4.27 20.97 8.63 4.77 23.41

Boise, ID Oklahoma City, OK 18.46 8.84 30.25 5.42 3.31 11.31

Boise, ID Portland, OR 11.28 5.17 20.52 8.86 4.87 19.36

Boise, ID Philadelphia, PA 9.60 3.56 16.33 10.42 6.12 28.11

Boise, ID Reno, NV 36.73 20.81 52.45 2.72 1.91 4.81

Boise, ID Salt Lake City, UT 11.47 6.01 20.38 8.72 4.91 16.65

Boston, MA (Metropolitan Area) Colorado Springs, CO 17.02 7.23 30.19 5.88 3.31 13.82

Boston, MA (Metropolitan Area) Dallas/Fort Worth, TX 3.70 1.65 7.46 27.05 13.41 60.49

Boston, MA (Metropolitan Area) Pittsburgh, PA 9.51 4.79 16.01 10.52 6.24 20.86

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Boston, MA (Metropolitan Area) Huntsville, AL 9.84 4.19 18.74 10.16 5.34 23.88

Boston, MA (Metropolitan Area) Denver, CO 6.60 2.93 11.86 15.14 8.43 34.15

Boston, MA (Metropolitan Area) Tucson, AZ 12.22 5.38 21.91 8.18 4.56 18.58

Boston, MA (Metropolitan Area) Phoenix, AZ 5.56 2.33 10.84 17.98 9.23 42.99

Boston, MA (Metropolitan Area) Kalamazoo, MI 13.19 5.59 23.16 7.58 4.32 17.90

Boston, MA (Metropolitan Area) Shreveport, LA 20.23 8.64 33.88 4.94 2.95 11.58

Boston, MA (Metropolitan Area) Seattle, WA 5.27 1.96 10.31 18.98 9.70 50.93

Boston, MA (Metropolitan Area) Mobile, AL 18.83 8.35 31.91 5.31 3.13 11.98

Boston, MA (Metropolitan Area) El Paso, TX 10.91 4.68 18.12 9.16 5.52 21.38

Boston, MA (Metropolitan Area) Cleveland, OH (Metropolitan Area) 8.51 3.73 15.90 11.76 6.29 26.81

Boston, MA (Metropolitan Area) Nashville, TN 7.45 3.53 12.30 13.42 8.13 28.33

Boston, MA (Metropolitan Area) Buffalo, NY 21.02 10.60 32.12 4.76 3.11 9.43

Boston, MA (Metropolitan Area) Bozeman, MT 9.39 3.68 17.14 10.65 5.83 27.16

Boston, MA (Metropolitan Area) Washington, DC (Metropolitan Area) 11.40 5.56 17.96 8.77 5.57 17.98

Boston, MA (Metropolitan Area) Columbia, SC 8.38 3.69 14.59 11.93 6.85 27.07

Boston, MA (Metropolitan Area) Wichita, KS 16.58 8.94 27.36 6.03 3.65 11.19

Boston, MA (Metropolitan Area) Chicago, IL 6.22 2.65 10.47 16.08 9.55 37.74

Boston, MA (Metropolitan Area) Chattanooga, TN 11.59 4.31 21.27 8.63 4.70 23.23

Boston, MA (Metropolitan Area) Charlottesville, VA 21.32 9.86 35.59 4.69 2.81 10.15

Boston, MA (Metropolitan Area) Charleston, SC 9.92 4.00 18.30 10.08 5.47 25.01

Boston, MA (Metropolitan Area) Cedar Rapids/Iowa City, IA 11.03 4.94 18.73 9.06 5.34 20.23

Boston, MA (Metropolitan Area) Charlotte, NC 9.46 4.05 15.51 10.57 6.45 24.71

Boston, MA (Metropolitan Area) Columbus, OH 9.48 3.87 17.52 10.54 5.71 25.82

Boston, MA (Metropolitan Area) Champaign/Urbana, IL 16.30 6.29 30.47 6.13 3.28 15.89

Boston, MA (Metropolitan Area) St. Louis, MO 5.75 2.32 10.35 17.38 9.66 43.11

Boston, MA (Metropolitan Area) Myrtle Beach, SC 10.72 5.11 18.59 9.33 5.38 19.58

Boston, MA (Metropolitan Area) Jacksonville, FL 7.30 3.09 14.82 13.69 6.75 32.41

Boston, MA (Metropolitan Area) Corpus Christi, TX 15.20 6.40 27.93 6.58 3.58 15.63

Boston, MA (Metropolitan Area) Charleston/Dunbar, WV 9.74 4.14 16.27 10.27 6.15 24.17

Boston, MA (Metropolitan Area) Daytona Beach, FL 22.48 9.17 40.08 4.45 2.49 10.91

Boston, MA (Metropolitan Area) Dayton, OH 12.25 4.97 21.59 8.16 4.63 20.12

Boston, MA (Metropolitan Area) Detroit, MI 8.04 3.72 13.81 12.44 7.24 26.86

Boston, MA (Metropolitan Area) Des Moines, IA 5.82 2.63 11.41 17.18 8.76 38.05

Boston, MA (Metropolitan Area) Houston, TX 8.64 3.77 14.33 11.58 6.98 26.52

Boston, MA (Metropolitan Area) Orlando, FL 10.14 3.43 16.58 9.86 6.03 29.17

Boston, MA (Metropolitan Area) Panama City, FL 36.67 20.31 51.65 2.73 1.94 4.92

Boston, MA (Metropolitan Area) Valparaiso, FL 11.43 4.70 21.31 8.75 4.69 21.27

Boston, MA (Metropolitan Area) Evansville, IN 14.44 6.40 27.08 6.92 3.69 15.61

Boston, MA (Metropolitan Area) New Bern/Morehead/Beaufort, NC 14.90 5.73 26.39 6.71 3.79 17.45

Boston, MA (Metropolitan Area) Key West, FL 18.97 7.52 34.27 5.27 2.92 13.30

Boston, MA (Metropolitan Area) Fresno, CA 8.97 3.54 16.23 11.14 6.16 28.28

Boston, MA (Metropolitan Area) Fayetteville, NC 12.63 4.42 23.18 7.92 4.31 22.63

Boston, MA (Metropolitan Area) Minneapolis/St. Paul, MN 6.80 3.13 11.53 14.70 8.67 31.96

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Boston, MA (Metropolitan Area) New York City, NY (Metropolitan Area) 10.13 4.41 18.04 9.87 5.54 22.65

Boston, MA (Metropolitan Area) Fort Myers, FL 8.90 4.05 16.42 11.24 6.09 24.72

Boston, MA (Metropolitan Area) Fort Wayne, IN 6.45 2.15 12.04 15.51 8.31 46.55

Boston, MA (Metropolitan Area) Fayetteville, AR 7.51 2.85 13.93 13.32 7.18 35.14

Boston, MA (Metropolitan Area) Greenville/Spartanburg, SC 15.01 7.09 24.13 6.66 4.14 14.11

Boston, MA (Metropolitan Area) Spokane, WA 9.26 4.08 17.23 10.80 5.80 24.52

Boston, MA (Metropolitan Area) Gainesville, FL 14.77 6.37 26.08 6.77 3.83 15.71

Boston, MA (Metropolitan Area) Green Bay, WI 13.01 5.59 23.01 7.69 4.35 17.90

Boston, MA (Metropolitan Area) Grand Rapids, MI 14.62 7.03 23.85 6.84 4.19 14.23

Boston, MA (Metropolitan Area) Greensboro/High Point, NC 9.53 3.99 16.77 10.50 5.96 25.06

Boston, MA (Metropolitan Area) Harrisburg, PA 19.65 9.78 34.12 5.09 2.93 10.23

Boston, MA (Metropolitan Area) Las Vegas, NV 7.52 3.70 13.01 13.29 7.68 27.02

Boston, MA (Metropolitan Area) Wilmington, NC 13.75 6.20 24.49 7.27 4.08 16.14

Boston, MA (Metropolitan Area) Indianapolis, IN 8.39 3.81 15.44 11.92 6.48 26.26

Boston, MA (Metropolitan Area) Jackson, WY 14.56 7.63 23.62 6.87 4.23 13.11

Boston, MA (Metropolitan Area) Jackson/Vicksburg, MS 11.58 4.79 19.83 8.64 5.04 20.88

Boston, MA (Metropolitan Area) San Francisco, CA (Metropolitan Area) 3.64 1.35 7.09 27.46 14.10 74.25

Boston, MA (Metropolitan Area) Miami, FL (Metropolitan Area) 9.20 4.29 16.14 10.87 6.20 23.29

Boston, MA (Metropolitan Area) Los Angeles, CA (Metropolitan Area) 4.11 1.83 7.87 24.31 12.71 54.65

Boston, MA (Metropolitan Area) Little Rock, AR 12.88 6.17 21.67 7.76 4.61 16.22

Boston, MA (Metropolitan Area) Lansing, MI 12.69 5.77 22.94 7.88 4.36 17.34

Boston, MA (Metropolitan Area) Lexington, KY 13.67 6.35 23.14 7.32 4.32 15.76

Boston, MA (Metropolitan Area) Louisville, KY 12.80 6.23 20.42 7.81 4.90 16.05

Boston, MA (Metropolitan Area) Cincinnati, OH 12.48 6.49 19.79 8.01 5.05 15.41

Boston, MA (Metropolitan Area) Sacramento, CA 8.31 3.46 15.10 12.03 6.62 28.93

Boston, MA (Metropolitan Area) Tampa, FL (Metropolitan Area) 8.65 3.92 15.27 11.56 6.55 25.52

Boston, MA (Metropolitan Area) Kansas City, MO 7.18 3.60 12.10 13.92 8.26 27.78

Boston, MA (Metropolitan Area) San Antonio, TX 14.36 7.44 21.75 6.97 4.60 13.45

Boston, MA (Metropolitan Area) Memphis, TN 17.00 6.58 31.91 5.88 3.13 15.20

Boston, MA (Metropolitan Area) Montgomery, AL 9.77 4.25 17.35 10.24 5.76 23.55

Boston, MA (Metropolitan Area) Omaha, NE 9.62 4.17 18.00 10.39 5.55 24.01

Boston, MA (Metropolitan Area) Milwaukee, WI 10.51 4.19 17.94 9.52 5.57 23.86

Boston, MA (Metropolitan Area) Melbourne, FL 19.39 8.05 36.21 5.16 2.76 12.43

Boston, MA (Metropolitan Area) Quad Cities, IL (Metropolitan Area) 8.47 3.22 16.27 11.80 6.15 31.01

Boston, MA (Metropolitan Area) Madison, WI 5.67 2.61 10.40 17.64 9.61 38.32

Boston, MA (Metropolitan Area) New Orleans, LA 16.80 6.11 30.77 5.95 3.25 16.37

Boston, MA (Metropolitan Area) San Diego, CA 3.66 2.05 6.13 27.29 16.32 48.89

Boston, MA (Metropolitan Area) Norfolk, VA (Metropolitan Area) 11.40 5.34 20.52 8.77 4.87 18.71

Boston, MA (Metropolitan Area) Pensacola, FL 21.03 10.03 31.95 4.75 3.13 9.97

Boston, MA (Metropolitan Area) Oklahoma City, OK 9.89 4.10 19.06 10.11 5.25 24.40

Boston, MA (Metropolitan Area) West Palm Beach/Palm Beach, FL 6.29 2.33 13.34 15.89 7.50 42.84

Boston, MA (Metropolitan Area) Portland, OR 4.24 1.71 8.49 23.73 11.77 58.41

Boston, MA (Metropolitan Area) Philadelphia, PA 10.51 5.04 16.66 9.52 6.00 19.84

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Boston, MA (Metropolitan Area) Peoria, IL 9.81 3.97 19.43 10.19 5.15 25.19

Boston, MA (Metropolitan Area) Palm Springs, CA 10.72 4.37 20.18 9.33 4.96 22.87

Boston, MA (Metropolitan Area) Raleigh/Durham, NC 4.73 2.09 8.63 21.13 11.59 47.76

Boston, MA (Metropolitan Area) Richmond, VA 10.64 4.82 16.56 9.40 6.04 20.75

Boston, MA (Metropolitan Area) Reno, NV 14.30 6.43 24.87 6.99 4.02 15.56

Boston, MA (Metropolitan Area) Roanoke, VA 9.80 4.27 18.22 10.20 5.49 23.40

Boston, MA (Metropolitan Area) Rochester, NY 16.10 6.12 28.81 6.21 3.47 16.33

Boston, MA (Metropolitan Area) Salt Lake City, UT 11.16 5.43 19.16 8.96 5.22 18.43

Boston, MA (Metropolitan Area) Tulsa, OK 10.71 4.28 20.21 9.33 4.95 23.37

Boston, MA (Metropolitan Area) Savannah, GA 15.14 6.20 27.71 6.61 3.61 16.12

Boston, MA (Metropolitan Area) Santa Barbara, CA 7.77 2.70 13.46 12.87 7.43 37.09

Boston, MA (Metropolitan Area) South Bend, IN 9.92 4.31 19.06 10.08 5.25 23.21

Boston, MA (Metropolitan Area) Philipsburg/State College, PA 11.29 4.96 19.33 8.86 5.17 20.18

Boston, MA (Metropolitan Area) Springfield, MO 11.11 4.63 21.64 9.00 4.62 21.62

Boston, MA (Metropolitan Area) Salinas/Monterey, CA 8.31 3.44 16.94 12.04 5.90 29.04

Boston, MA (Metropolitan Area) Sarasota/Bradenton, FL 19.13 7.06 37.40 5.23 2.67 14.17

Boston, MA (Metropolitan Area) Syracuse, NY 20.99 8.90 37.56 4.76 2.66 11.24

Boston, MA (Metropolitan Area) Tallahassee, FL 21.39 11.64 31.63 4.67 3.16 8.59

Boston, MA (Metropolitan Area) Bristol/Johnson City/Kingsport, TN 9.54 3.55 16.33 10.48 6.12 28.18

Boston, MA (Metropolitan Area) Knoxville, TN 13.65 6.19 21.30 7.32 4.70 16.16

Brownsville, TX Chicago, IL 25.70 11.73 39.57 3.89 2.53 8.52

Baton Rouge, LA Dallas/Fort Worth, TX 10.30 4.88 17.06 9.71 5.87 20.50

Baton Rouge, LA Denver, CO 16.50 6.50 29.77 6.06 3.36 15.39

Baton Rouge, LA Phoenix, AZ 12.01 4.27 21.46 8.33 4.66 23.41

Baton Rouge, LA Seattle, WA 14.06 5.71 27.16 7.11 3.68 17.51

Baton Rouge, LA Nashville, TN 18.18 7.12 34.75 5.50 2.88 14.05

Baton Rouge, LA Boston, MA (Metropolitan Area) 14.77 6.02 28.38 6.77 3.52 16.60

Baton Rouge, LA Washington, DC (Metropolitan Area) 17.65 7.96 30.31 5.67 3.30 12.56

Baton Rouge, LA Chicago, IL 18.67 8.28 31.30 5.36 3.19 12.08

Baton Rouge, LA Houston, TX 29.11 15.04 44.93 3.44 2.23 6.65

Baton Rouge, LA Orlando, FL 24.47 10.93 41.41 4.09 2.41 9.15

Baton Rouge, LA Minneapolis/St. Paul, MN 15.25 6.32 27.64 6.56 3.62 15.82

Baton Rouge, LA New York City, NY (Metropolitan Area) 17.08 5.30 31.46 5.85 3.18 18.88

Baton Rouge, LA Las Vegas, NV 13.73 4.41 26.38 7.29 3.79 22.67

Baton Rouge, LA Indianapolis, IN 14.30 5.54 25.32 6.99 3.95 18.06

Baton Rouge, LA San Francisco, CA (Metropolitan Area) 13.27 3.60 25.24 7.54 3.96 27.75

Baton Rouge, LA Miami, FL (Metropolitan Area) 15.74 6.61 27.80 6.35 3.60 15.12

Baton Rouge, LA Los Angeles, CA (Metropolitan Area) 18.17 7.93 29.65 5.50 3.37 12.61

Baton Rouge, LA Kansas City, MO 10.29 4.53 18.74 9.71 5.33 22.08

Baton Rouge, LA San Antonio, TX 18.09 7.25 31.95 5.53 3.13 13.79

Baton Rouge, LA San Diego, CA 15.02 6.04 28.22 6.66 3.54 16.56

Baton Rouge, LA Philadelphia, PA 14.68 6.85 26.03 6.81 3.84 14.59

Baton Rouge, LA Raleigh/Durham, NC 12.12 4.90 23.87 8.25 4.19 20.39

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Burlington, VT Dallas/Fort Worth, TX 14.74 6.81 25.45 6.79 3.93 14.69

Burlington, VT Pittsburgh, PA 10.98 4.26 21.51 9.11 4.65 23.45

Burlington, VT Denver, CO 22.11 11.89 32.23 4.52 3.10 8.41

Burlington, VT Phoenix, AZ 12.62 5.30 20.93 7.92 4.78 18.86

Burlington, VT Seattle, WA 14.90 6.91 23.86 6.71 4.19 14.48

Burlington, VT Washington, DC (Metropolitan Area) 17.42 7.36 30.32 5.74 3.30 13.59

Burlington, VT Chicago, IL 9.54 4.19 17.88 10.48 5.59 23.85

Burlington, VT Charlotte, NC 9.33 4.39 17.40 10.72 5.75 22.79

Burlington, VT Orlando, FL 12.38 5.22 25.81 8.08 3.88 19.16

Burlington, VT Minneapolis/St. Paul, MN 9.63 3.99 16.13 10.38 6.20 25.07

Burlington, VT New York City, NY (Metropolitan Area) 5.92 2.15 11.70 16.88 8.55 46.48

Burlington, VT Fort Myers, FL 14.20 5.88 25.62 7.04 3.90 17.01

Burlington, VT Las Vegas, NV 11.28 4.78 20.74 8.87 4.82 20.90

Burlington, VT San Francisco, CA (Metropolitan Area) 7.37 3.31 13.29 13.57 7.53 30.19

Burlington, VT Miami, FL (Metropolitan Area) 21.24 8.52 36.29 4.71 2.76 11.73

Burlington, VT Los Angeles, CA (Metropolitan Area) 9.45 4.15 15.91 10.58 6.28 24.09

Burlington, VT Tampa, FL (Metropolitan Area) 13.61 6.07 24.45 7.35 4.09 16.47

Burlington, VT San Diego, CA 9.71 3.81 16.50 10.30 6.06 26.23

Burlington, VT West Palm Beach/Palm Beach, FL 11.21 4.85 21.79 8.92 4.59 20.60

Burlington, VT Philadelphia, PA 10.44 4.70 18.80 9.57 5.32 21.27

Burlington, VT Raleigh/Durham, NC 15.58 7.66 25.20 6.42 3.97 13.06

Buffalo, NY Dallas/Fort Worth, TX 10.47 4.08 18.35 9.55 5.45 24.49

Buffalo, NY Denver, CO 13.20 5.74 22.86 7.57 4.37 17.41

Buffalo, NY Phoenix, AZ 10.12 4.27 17.95 9.88 5.57 23.40

Buffalo, NY Seattle, WA 12.36 5.97 20.49 8.09 4.88 16.75

Buffalo, NY Nashville, TN 8.22 3.65 15.07 12.16 6.63 27.37

Buffalo, NY Washington, DC (Metropolitan Area) 6.29 2.77 12.48 15.90 8.02 36.09

Buffalo, NY Chicago, IL 13.23 6.39 21.94 7.56 4.56 15.66

Buffalo, NY Charleston, SC 17.26 8.35 28.22 5.79 3.54 11.97

Buffalo, NY Charlotte, NC 14.74 6.38 24.81 6.78 4.03 15.68

Buffalo, NY St. Louis, MO 17.70 7.96 27.59 5.65 3.63 12.56

Buffalo, NY Jacksonville, FL 12.06 5.32 22.12 8.29 4.52 18.79

Buffalo, NY Detroit, MI 23.34 12.93 35.51 4.28 2.82 7.73

Buffalo, NY Houston, TX 10.32 4.02 17.60 9.69 5.68 24.85

Buffalo, NY Orlando, FL 8.84 3.80 17.41 11.31 5.74 26.29

Buffalo, NY Minneapolis/St. Paul, MN 9.40 3.90 16.32 10.64 6.13 25.67

Buffalo, NY New York City, NY (Metropolitan Area) 12.02 5.26 22.90 8.32 4.37 18.99

Buffalo, NY Fort Myers, FL 14.34 6.38 24.83 6.98 4.03 15.68

Buffalo, NY Greensboro/High Point, NC 14.03 5.83 25.80 7.13 3.88 17.16

Buffalo, NY Las Vegas, NV 8.62 3.66 17.01 11.60 5.88 27.35

Buffalo, NY Indianapolis, IN 11.29 5.09 19.65 8.86 5.09 19.63

Buffalo, NY San Francisco, CA (Metropolitan Area) 6.14 2.57 11.81 16.28 8.47 38.89

Buffalo, NY Miami, FL (Metropolitan Area) 11.88 4.77 22.50 8.41 4.45 20.95

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Buffalo, NY Los Angeles, CA (Metropolitan Area) 6.88 3.42 14.19 14.54 7.05 29.24

Buffalo, NY Louisville, KY 14.41 6.47 24.19 6.94 4.13 15.45

Buffalo, NY Tampa, FL (Metropolitan Area) 9.19 3.36 18.32 10.88 5.46 29.73

Buffalo, NY Kansas City, MO 7.43 3.07 13.83 13.45 7.23 32.58

Buffalo, NY San Antonio, TX 11.99 5.25 21.10 8.34 4.74 19.03

Buffalo, NY Memphis, TN 11.80 5.09 20.99 8.47 4.76 19.63

Buffalo, NY Milwaukee, WI 20.42 10.02 32.15 4.90 3.11 9.98

Buffalo, NY New Orleans, LA 12.17 4.97 21.90 8.22 4.57 20.11

Buffalo, NY San Diego, CA 10.06 4.24 18.34 9.94 5.45 23.56

Buffalo, NY Norfolk, VA (Metropolitan Area) 22.05 10.52 35.16 4.54 2.84 9.51

Buffalo, NY West Palm Beach/Palm Beach, FL 14.69 6.01 25.36 6.81 3.94 16.63

Buffalo, NY Portland, OR 10.78 5.04 18.94 9.27 5.28 19.85

Buffalo, NY Philadelphia, PA 14.72 7.12 23.28 6.79 4.30 14.04

Buffalo, NY Raleigh/Durham, NC 7.96 3.21 14.53 12.56 6.88 31.12

Buffalo, NY Richmond, VA 8.59 3.85 16.71 11.65 5.98 25.97

Buffalo, NY Salt Lake City, UT 15.85 7.67 25.36 6.31 3.94 13.04

Buffalo, NY Sarasota/Bradenton, FL 25.00 11.04 42.25 4.00 2.37 9.06

Bozeman, MT Dallas/Fort Worth, TX 10.71 4.43 18.10 9.34 5.52 22.56

Bozeman, MT Phoenix, AZ 12.34 5.24 22.12 8.10 4.52 19.09

Bozeman, MT Seattle, WA 14.22 6.09 27.65 7.03 3.62 16.42

Bozeman, MT Washington, DC (Metropolitan Area) 11.43 5.01 20.04 8.75 4.99 19.97

Bozeman, MT Chicago, IL 6.59 2.82 12.65 15.18 7.91 35.44

Bozeman, MT Detroit, MI 10.80 4.65 20.70 9.26 4.83 21.49

Bozeman, MT Minneapolis/St. Paul, MN 6.82 3.33 13.63 14.67 7.34 30.01

Bozeman, MT New York City, NY (Metropolitan Area) 10.61 4.33 17.45 9.43 5.73 23.07

Bozeman, MT San Francisco, CA (Metropolitan Area) 8.25 3.25 13.90 12.12 7.19 30.78

Bozeman, MT Los Angeles, CA (Metropolitan Area) 6.56 2.85 13.52 15.24 7.40 35.04

Bozeman, MT Portland, OR 19.66 8.72 33.90 5.09 2.95 11.47

Washington, DC (Metropolitan Area) Wausau/Mosinee/Stevens Point, WI 12.87 5.70 22.63 7.77 4.42 17.55

Washington, DC (Metropolitan Area) Wichita, KS 17.46 8.89 25.97 5.73 3.85 11.24

Washington, DC (Metropolitan Area) Wilmington, NC 18.98 9.34 30.93 5.27 3.23 10.71

Washington, DC (Metropolitan Area) West Palm Beach/Palm Beach, FL 7.01 2.78 14.81 14.28 6.75 35.93

Columbia, SC Dallas/Fort Worth, TX 10.76 4.91 19.75 9.30 5.06 20.36

Columbia, SC Pittsburgh, PA 23.38 10.88 37.76 4.28 2.65 9.19

Columbia, SC Denver, CO 13.93 5.47 24.21 7.18 4.13 18.27

Columbia, SC Phoenix, AZ 14.89 6.95 25.02 6.72 4.00 14.39

Columbia, SC Hartford, CT 17.33 8.93 28.04 5.77 3.57 11.20

Columbia, SC Seattle, WA 16.99 6.85 28.68 5.89 3.49 14.59

Columbia, SC Nashville, TN 18.78 8.53 29.91 5.33 3.34 11.73

Columbia, SC Washington, DC (Metropolitan Area) 29.19 16.53 41.36 3.43 2.42 6.05

Columbia, SC Columbus, OH 20.19 8.98 33.19 4.95 3.01 11.14

Columbia, SC St. Louis, MO 10.76 4.04 21.88 9.29 4.57 24.73

Columbia, SC Detroit, MI 19.43 8.69 33.24 5.15 3.01 11.51

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Columbia, SC Houston, TX 20.98 7.92 38.44 4.77 2.60 12.63

Columbia, SC Orlando, FL 30.01 15.53 44.41 3.33 2.25 6.44

Columbia, SC Minneapolis/St. Paul, MN 15.55 6.43 26.71 6.43 3.74 15.55

Columbia, SC New York City, NY (Metropolitan Area) 14.34 5.93 25.89 6.97 3.86 16.86

Columbia, SC Las Vegas, NV 30.84 15.78 46.73 3.24 2.14 6.34

Columbia, SC Indianapolis, IN 14.99 7.05 25.35 6.67 3.94 14.18

Columbia, SC San Francisco, CA (Metropolitan Area) 20.10 8.78 32.32 4.97 3.09 11.39

Columbia, SC Miami, FL (Metropolitan Area) 18.42 7.79 30.21 5.43 3.31 12.83

Columbia, SC Los Angeles, CA (Metropolitan Area) 12.63 5.32 22.46 7.92 4.45 18.79

Columbia, SC Louisville, KY 24.83 11.84 38.08 4.03 2.63 8.45

Columbia, SC Tampa, FL (Metropolitan Area) 23.32 11.37 33.70 4.29 2.97 8.80

Columbia, SC Kansas City, MO 8.48 3.60 15.27 11.80 6.55 27.75

Columbia, SC San Antonio, TX 14.49 6.37 26.85 6.90 3.72 15.70

Columbia, SC Memphis, TN 13.92 6.03 24.46 7.18 4.09 16.59

Columbia, SC Milwaukee, WI 11.31 5.13 20.35 8.84 4.91 19.50

Columbia, SC San Diego, CA 21.28 10.06 33.97 4.70 2.94 9.94

Columbia, SC Philadelphia, PA 27.30 13.48 43.89 3.66 2.28 7.42

Chicago, IL Colorado Springs, CO 20.50 9.45 36.67 4.88 2.73 10.59

Chicago, IL Dallas/Fort Worth, TX 6.78 2.78 12.38 14.75 8.08 35.93

Chicago, IL Pittsburgh, PA 9.81 4.69 16.63 10.19 6.01 21.34

Chicago, IL Huntsville, AL 9.53 4.24 17.71 10.49 5.65 23.57

Chicago, IL Denver, CO 6.67 3.23 12.87 14.99 7.77 30.98

Chicago, IL Tucson, AZ 7.73 3.15 14.07 12.93 7.11 31.73

Chicago, IL Phoenix, AZ 5.13 2.26 8.94 19.51 11.19 44.22

Chicago, IL Shreveport, LA 17.04 8.17 28.47 5.87 3.51 12.24

Chicago, IL Hartford, CT 4.38 1.63 8.97 22.86 11.15 61.35

Chicago, IL Seattle, WA 5.91 2.65 9.81 16.91 10.20 37.72

Chicago, IL Mobile, AL 16.88 7.66 28.97 5.93 3.45 13.05

Chicago, IL El Paso, TX 7.86 3.58 14.21 12.72 7.04 27.95

Chicago, IL Cleveland, OH (Metropolitan Area) 10.18 4.18 17.72 9.82 5.64 23.95

Chicago, IL Nashville, TN 7.99 3.10 15.23 12.51 6.57 32.22

Chicago, IL Washington, DC (Metropolitan Area) 7.04 3.15 12.12 14.21 8.25 31.77

Chicago, IL Columbia, SC 17.27 7.20 30.84 5.79 3.24 13.89

Chicago, IL Wichita, KS - - - - - -

Chicago, IL Columbus, OH 11.57 5.43 19.73 8.64 5.07 18.40

Chicago, IL St. Louis, MO 10.90 4.16 19.63 9.17 5.09 24.01

Chicago, IL Myrtle Beach, SC 23.39 11.69 35.48 4.28 2.82 8.56

Chicago, IL Jacksonville, FL 10.67 4.64 19.76 9.37 5.06 21.55

Chicago, IL Corpus Christi, TX 12.85 5.82 22.89 7.78 4.37 17.19

Chicago, IL Daytona Beach, FL 19.56 8.23 34.76 5.11 2.88 12.14

Chicago, IL Dayton, OH 13.13 5.83 24.96 7.62 4.01 17.16

Chicago, IL Detroit, MI 9.14 3.71 18.72 10.95 5.34 26.98

Chicago, IL Duluth, MN 11.71 4.54 22.37 8.54 4.47 22.03

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Chicago, IL Des Moines, IA 6.25 2.96 11.02 16.01 9.07 33.74

Chicago, IL Houston, TX 4.44 1.99 8.99 22.52 11.12 50.34

Chicago, IL Orlando, FL 6.75 2.83 11.79 14.82 8.48 35.36

Chicago, IL Panama City, FL 25.25 11.98 40.70 3.96 2.46 8.34

Chicago, IL Valparaiso, FL 18.74 7.97 32.95 5.34 3.04 12.54

Chicago, IL Eugene, OR 6.53 2.22 12.00 15.31 8.34 45.06

Chicago, IL Evansville, IN 8.28 3.38 15.06 12.08 6.64 29.56

Chicago, IL Key West, FL 25.01 12.08 39.94 4.00 2.50 8.28

Chicago, IL Fargo, ND 15.22 6.57 26.07 6.57 3.84 15.23

Chicago, IL Fresno, CA 11.59 4.85 19.76 8.63 5.06 20.64

Chicago, IL Fayetteville, NC 15.88 6.91 26.82 6.30 3.73 14.47

Chicago, IL Minneapolis/St. Paul, MN 4.33 1.74 8.07 23.11 12.39 57.55

Chicago, IL New York City, NY (Metropolitan Area) 13.36 7.43 18.97 7.48 5.27 13.47

Chicago, IL Fort Myers, FL 7.55 3.55 14.25 13.24 7.02 28.15

Chicago, IL Sioux Falls, SD 23.10 10.56 42.39 4.33 2.36 9.47

Chicago, IL Fort Wayne, IN 15.69 6.63 25.02 6.37 4.00 15.09

Chicago, IL Fayetteville, AR 10.07 4.05 18.60 9.93 5.38 24.71

Chicago, IL Greenville/Spartanburg, SC 23.30 11.04 38.12 4.29 2.62 9.06

Chicago, IL Spokane, WA 7.93 3.58 16.42 12.61 6.09 27.94

Chicago, IL Gainesville, FL 24.59 11.01 42.31 4.07 2.36 9.08

Chicago, IL Gulfport/Biloxi, MS 23.45 12.19 35.65 4.26 2.81 8.20

Chicago, IL Green Bay, WI 12.88 5.95 21.34 7.76 4.69 16.82

Chicago, IL Grand Rapids, MI 7.18 2.70 12.62 13.93 7.93 37.00

Chicago, IL Greensboro/High Point, NC 5.98 2.35 14.55 16.73 6.88 42.56

Chicago, IL Harrisburg, PA 8.23 3.42 15.79 12.14 6.33 29.22

Chicago, IL Harlingen/San Benito, TX 8.95 3.88 17.14 11.18 5.83 25.77

Chicago, IL Las Vegas, NV 6.15 2.58 11.35 16.26 8.81 38.70

Chicago, IL Wilmington, NC 9.85 3.77 19.92 10.15 5.02 26.51

Chicago, IL Indianapolis, IN 6.78 2.96 12.87 14.75 7.77 33.83

Chicago, IL Jackson, WY 12.82 5.49 23.84 7.80 4.19 18.22

Chicago, IL Jackson/Vicksburg, MS 16.74 7.99 28.13 5.98 3.55 12.51

Chicago, IL San Francisco, CA (Metropolitan Area) 3.17 1.62 5.22 31.59 19.16 61.75

Chicago, IL Miami, FL (Metropolitan Area) 6.38 2.92 11.36 15.67 8.80 34.27

Chicago, IL Rochester, MN 15.11 6.98 24.65 6.62 4.06 14.32

Chicago, IL Los Angeles, CA (Metropolitan Area) 2.94 1.25 6.36 34.01 15.73 80.36

Chicago, IL Little Rock, AR 12.05 5.10 21.75 8.30 4.60 19.62

Chicago, IL Lubbock, TX 13.70 5.98 22.76 7.30 4.39 16.72

Chicago, IL Lexington, KY 20.15 10.18 31.25 4.96 3.20 9.83

Chicago, IL Lafayette, LA 14.63 6.50 25.18 6.84 3.97 15.38

Chicago, IL Lincoln, NE 20.19 9.23 33.65 4.95 2.97 10.84

Chicago, IL Louisville, KY 5.46 2.20 10.76 18.31 9.29 45.47

Chicago, IL La Crosse, WI 10.55 4.17 19.33 9.48 5.17 23.96

Chicago, IL Cincinnati, OH 7.45 3.54 11.95 13.42 8.37 28.24

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Chicago, IL Midland/Odessa, TX 12.47 4.62 23.36 8.02 4.28 21.63

Chicago, IL Sacramento, CA 7.92 3.16 14.18 12.63 7.05 31.64

Chicago, IL Tampa, FL (Metropolitan Area) 8.03 3.39 13.95 12.46 7.17 29.46

Chicago, IL Kansas City, MO 9.34 4.60 15.88 10.71 6.30 21.78

Chicago, IL San Antonio, TX 9.18 4.00 17.27 10.90 5.79 25.00

Chicago, IL Memphis, TN 12.34 5.44 22.16 8.10 4.51 18.40

Chicago, IL Mission/McAllen/Edinburg, TX 11.19 5.33 18.94 8.93 5.28 18.76

Chicago, IL Montgomery, AL 12.00 4.19 23.47 8.33 4.26 23.89

Chicago, IL Omaha, NE 15.87 6.46 27.71 6.30 3.61 15.48

Chicago, IL Madison, WI 13.39 5.56 23.69 7.47 4.22 17.99

Chicago, IL Missoula, MT 12.94 5.36 24.27 7.73 4.12 18.67

Chicago, IL New Orleans, LA 10.08 3.79 22.16 9.92 4.51 26.36

Chicago, IL San Diego, CA 5.04 2.09 10.18 19.85 9.82 47.74

Chicago, IL Norfolk, VA (Metropolitan Area) 6.80 3.40 13.28 14.70 7.53 29.44

Chicago, IL Pensacola, FL 14.55 7.17 26.42 6.87 3.79 13.94

Chicago, IL Oklahoma City, OK 10.29 4.53 19.13 9.72 5.23 22.06

Chicago, IL West Palm Beach/Palm Beach, FL 9.95 3.88 17.31 10.05 5.78 25.75

Chicago, IL Portland, OR 5.35 2.14 8.84 18.69 11.31 46.69

Chicago, IL Philadelphia, PA 6.22 2.78 10.25 16.08 9.75 35.96

Chicago, IL Paso Robles/San Luis Obispo, CA 14.87 4.54 25.44 6.73 3.93 22.02

Chicago, IL Palm Springs, CA 14.57 6.26 26.53 6.86 3.77 15.98

Chicago, IL Portland, ME 9.08 2.83 17.34 11.01 5.77 35.34

Chicago, IL Rapid City, SD 13.54 6.24 23.24 7.38 4.30 16.03

Chicago, IL Raleigh/Durham, NC 5.51 2.43 10.32 18.15 9.69 41.20

Chicago, IL Richmond, VA 6.22 2.67 11.48 16.08 8.71 37.48

Chicago, IL Reno, NV 12.55 5.14 24.88 7.97 4.02 19.44

Chicago, IL Roanoke, VA 21.98 8.95 39.22 4.55 2.55 11.18

Chicago, IL Rochester, NY 12.22 5.62 21.45 8.18 4.66 17.80

Chicago, IL Salt Lake City, UT 7.79 3.26 13.81 12.84 7.24 30.64

Chicago, IL Tulsa, OK 19.00 8.86 31.11 5.26 3.21 11.29

Chicago, IL Savannah, GA 13.39 5.14 25.31 7.47 3.95 19.46

Chicago, IL Santa Barbara, CA 8.63 3.26 16.49 11.59 6.06 30.65

Chicago, IL Philipsburg/State College, PA 10.73 4.61 20.33 9.32 4.92 21.69

Chicago, IL Springfield, MO 17.36 7.86 30.64 5.76 3.26 12.73

Chicago, IL Salinas/Monterey, CA 14.20 6.45 23.87 7.04 4.19 15.50

Chicago, IL Sarasota/Bradenton, FL 13.06 5.29 24.55 7.66 4.07 18.89

Chicago, IL Syracuse, NY 9.76 3.86 19.04 10.24 5.25 25.93

Chicago, IL Toledo, OH 16.48 7.77 29.24 6.07 3.42 12.86

Chicago, IL Tallahassee, FL 15.83 8.31 25.71 6.32 3.89 12.04

Chicago, IL Traverse City, MI 7.96 3.22 16.14 12.57 6.20 31.03

Chicago, IL Knoxville, TN 8.83 4.15 18.08 11.33 5.54 24.12

Chattanooga, TN Dallas/Fort Worth, TX 10.58 4.23 19.48 9.45 5.13 23.66

Chattanooga, TN Washington, DC (Metropolitan Area) 10.24 4.86 18.35 9.77 5.45 20.58

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Chattanooga, TN Chicago, IL 9.97 4.63 17.46 10.03 5.73 21.58

Chattanooga, TN Orlando, FL 12.84 6.04 22.31 7.79 4.48 16.56

Chattanooga, TN Minneapolis/St. Paul, MN 13.51 6.84 21.63 7.40 4.62 14.63

Chattanooga, TN New York City, NY (Metropolitan Area) 8.59 3.71 15.62 11.64 6.40 26.96

Chattanooga, TN Las Vegas, NV 20.46 8.60 35.89 4.89 2.79 11.63

Chattanooga, TN Miami, FL (Metropolitan Area) 25.43 13.03 38.33 3.93 2.61 7.67

Chattanooga, TN Los Angeles, CA (Metropolitan Area) 14.30 5.77 25.33 6.99 3.95 17.34

Chattanooga, TN Tampa, FL (Metropolitan Area) 18.28 8.34 30.83 5.47 3.24 11.98

Chattanooga, TN Philadelphia, PA 13.89 5.36 24.49 7.20 4.08 18.65

Charlottesville, VA Chicago, IL 19.84 7.28 35.19 5.04 2.84 13.75

Charlottesville, VA San Francisco, CA (Metropolitan Area) 6.56 2.45 11.10 15.26 9.01 40.78

Charlottesville, VA Miami, FL (Metropolitan Area) 15.59 7.49 27.46 6.42 3.64 13.35

Charlottesville, VA Los Angeles, CA (Metropolitan Area) 9.49 4.41 18.13 10.54 5.52 22.65

Charleston, SC Dallas/Fort Worth, TX 7.72 3.52 13.79 12.95 7.25 28.37

Charleston, SC Pittsburgh, PA 13.47 6.38 21.49 7.42 4.65 15.68

Charleston, SC Denver, CO 16.20 7.49 27.07 6.17 3.69 13.36

Charleston, SC Phoenix, AZ 7.66 3.16 13.81 13.06 7.24 31.67

Charleston, SC Hartford, CT 10.13 4.37 18.37 9.87 5.44 22.90

Charleston, SC Seattle, WA 7.18 3.27 14.29 13.92 7.00 30.56

Charleston, SC Cleveland, OH (Metropolitan Area) 11.26 4.38 20.26 8.88 4.94 22.84

Charleston, SC Nashville, TN 13.74 6.00 22.50 7.28 4.44 16.65

Charleston, SC Washington, DC (Metropolitan Area) 12.34 4.82 21.90 8.10 4.57 20.75

Charleston, SC Chicago, IL 16.92 7.34 30.39 5.91 3.29 13.62

Charleston, SC Columbus, OH 12.60 5.70 21.54 7.94 4.64 17.55

Charleston, SC St. Louis, MO 9.57 3.89 17.86 10.45 5.60 25.72

Charleston, SC Dayton, OH 10.24 4.89 18.35 9.77 5.45 20.44

Charleston, SC Detroit, MI 18.03 8.02 32.31 5.55 3.10 12.46

Charleston, SC Houston, TX 13.28 5.23 24.30 7.53 4.12 19.13

Charleston, SC Orlando, FL 10.45 4.19 18.27 9.57 5.47 23.85

Charleston, SC Minneapolis/St. Paul, MN 11.26 4.86 19.69 8.88 5.08 20.58

Charleston, SC New York City, NY (Metropolitan Area) 17.72 8.51 29.84 5.64 3.35 11.75

Charleston, SC Las Vegas, NV 14.86 5.88 28.07 6.73 3.56 17.00

Charleston, SC Indianapolis, IN 10.88 5.13 18.31 9.19 5.46 19.51

Charleston, SC San Francisco, CA (Metropolitan Area) 12.58 5.03 23.76 7.95 4.21 19.86

Charleston, SC Miami, FL (Metropolitan Area) 13.42 5.66 21.87 7.45 4.57 17.65

Charleston, SC Los Angeles, CA (Metropolitan Area) 7.91 3.16 15.05 12.65 6.65 31.63

Charleston, SC Louisville, KY 19.29 9.43 31.49 5.19 3.18 10.61

Charleston, SC Cincinnati, OH 11.43 4.63 21.85 8.75 4.58 21.59

Charleston, SC Tampa, FL (Metropolitan Area) 6.50 2.36 11.62 15.39 8.60 42.29

Charleston, SC Kansas City, MO 13.99 6.33 23.57 7.15 4.24 15.79

Charleston, SC San Antonio, TX 23.41 11.56 36.48 4.27 2.74 8.65

Charleston, SC Memphis, TN 17.18 7.63 30.34 5.82 3.30 13.11

Charleston, SC Milwaukee, WI 16.38 8.20 25.95 6.10 3.85 12.19

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Charleston, SC New Orleans, LA 9.11 3.84 18.73 10.98 5.34 26.01

Charleston, SC San Diego, CA 9.54 4.15 16.84 10.48 5.94 24.09

Charleston, SC Norfolk, VA (Metropolitan Area) 16.01 7.44 27.68 6.25 3.61 13.44

Charleston, SC West Palm Beach/Palm Beach, FL 10.94 5.07 18.98 9.14 5.27 19.73

Charleston, SC Philadelphia, PA 10.12 4.32 20.23 9.89 4.94 23.16

Charleston, SC Richmond, VA 8.46 3.08 15.64 11.82 6.40 32.42

Cedar Rapids/Iowa City, IA Dallas/Fort Worth, TX 13.12 5.62 22.43 7.62 4.46 17.81

Cedar Rapids/Iowa City, IA Denver, CO 14.29 6.38 24.49 7.00 4.08 15.68

Cedar Rapids/Iowa City, IA Phoenix, AZ 13.56 5.79 27.33 7.37 3.66 17.27

Cedar Rapids/Iowa City, IA Seattle, WA 11.04 4.69 20.22 9.06 4.95 21.34

Cedar Rapids/Iowa City, IA Nashville, TN 9.80 3.71 16.73 10.20 5.98 26.92

Cedar Rapids/Iowa City, IA Washington, DC (Metropolitan Area) 12.29 5.68 20.34 8.13 4.92 17.59

Cedar Rapids/Iowa City, IA Chicago, IL 8.39 4.11 14.28 11.92 7.00 24.36

Cedar Rapids/Iowa City, IA Houston, TX 13.80 5.88 23.70 7.24 4.22 17.02

Cedar Rapids/Iowa City, IA Orlando, FL 11.13 4.66 19.86 8.98 5.04 21.45

Cedar Rapids/Iowa City, IA Minneapolis/St. Paul, MN 18.77 9.45 30.65 5.33 3.26 10.58

Cedar Rapids/Iowa City, IA New York City, NY (Metropolitan Area) 6.73 2.68 12.37 14.86 8.08 37.38

Cedar Rapids/Iowa City, IA Las Vegas, NV 18.20 7.51 34.15 5.50 2.93 13.32

Cedar Rapids/Iowa City, IA San Francisco, CA (Metropolitan Area) 10.07 4.12 17.87 9.93 5.59 24.28

Cedar Rapids/Iowa City, IA Miami, FL (Metropolitan Area) 18.18 7.65 32.21 5.50 3.10 13.07

Cedar Rapids/Iowa City, IA Los Angeles, CA (Metropolitan Area) 9.55 3.89 16.27 10.47 6.15 25.73

Cedar Rapids/Iowa City, IA Tampa, FL (Metropolitan Area) 14.07 5.74 23.01 7.11 4.35 17.43

Cedar Rapids/Iowa City, IA San Antonio, TX 15.99 6.38 27.32 6.25 3.66 15.68

Cedar Rapids/Iowa City, IA San Diego, CA 11.67 4.57 20.77 8.57 4.81 21.86

Cedar Rapids/Iowa City, IA Philadelphia, PA 9.10 3.92 16.26 10.99 6.15 25.49

College Station/Bryan, TX Dallas/Fort Worth, TX 20.87 10.13 36.29 4.79 2.76 9.87

College Station/Bryan, TX Washington, DC (Metropolitan Area) 17.61 8.23 29.07 5.68 3.44 12.15

Charlotte, NC Colorado Springs, CO 20.85 9.54 34.58 4.80 2.89 10.49

Charlotte, NC Dallas/Fort Worth, TX 7.40 3.07 13.96 13.51 7.17 32.59

Charlotte, NC Pittsburgh, PA 8.87 3.59 16.88 11.27 5.92 27.88

Charlotte, NC Denver, CO 8.70 3.87 15.93 11.50 6.28 25.87

Charlotte, NC Tucson, AZ 7.78 3.69 15.01 12.85 6.66 27.09

Charlotte, NC Phoenix, AZ 9.64 4.41 18.89 10.37 5.30 22.65

Charlotte, NC Hartford, CT 9.15 3.81 16.18 10.93 6.18 26.24

Charlotte, NC Seattle, WA 7.51 3.39 14.13 13.32 7.08 29.48

Charlotte, NC Cleveland, OH (Metropolitan Area) 9.90 4.32 17.33 10.10 5.77 23.15

Charlotte, NC Nashville, TN 6.71 3.04 12.75 14.91 7.85 32.89

Charlotte, NC Washington, DC (Metropolitan Area) 11.07 5.17 18.66 9.04 5.36 19.35

Charlotte, NC Wichita, KS 16.59 7.55 27.09 6.03 3.69 13.24

Charlotte, NC Chicago, IL 6.44 3.12 12.33 15.54 8.11 32.10

Charlotte, NC Columbus, OH 12.96 5.22 22.80 7.72 4.39 19.14

Charlotte, NC St. Louis, MO 15.82 7.60 25.39 6.32 3.94 13.16

Charlotte, NC Jacksonville, FL 21.31 12.46 29.05 4.69 3.44 8.03

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Charlotte, NC Dayton, OH 19.27 8.59 31.45 5.19 3.18 11.64

Charlotte, NC Detroit, MI 9.60 4.13 17.63 10.42 5.67 24.19

Charlotte, NC Des Moines, IA 13.54 5.98 22.46 7.39 4.45 16.72

Charlotte, NC Houston, TX 10.22 4.11 19.89 9.79 5.03 24.32

Charlotte, NC Orlando, FL 7.11 2.58 12.64 14.06 7.91 38.82

Charlotte, NC Key West, FL 25.51 11.92 42.09 3.92 2.38 8.39

Charlotte, NC Minneapolis/St. Paul, MN 8.90 3.92 14.98 11.24 6.68 25.50

Charlotte, NC New York City, NY (Metropolitan Area) 7.14 3.14 12.34 14.01 8.10 31.81

Charlotte, NC Fort Myers, FL 9.82 4.48 17.79 10.19 5.62 22.31

Charlotte, NC Grand Rapids, MI 13.53 5.36 23.66 7.39 4.23 18.67

Charlotte, NC Harrisburg, PA 10.25 4.70 19.07 9.76 5.24 21.27

Charlotte, NC Las Vegas, NV 15.09 7.21 26.69 6.63 3.75 13.88

Charlotte, NC Wilmington, NC 15.54 6.73 25.28 6.44 3.96 14.85

Charlotte, NC Indianapolis, IN 8.50 3.55 15.09 11.76 6.63 28.16

Charlotte, NC Jackson/Vicksburg, MS 10.85 4.18 20.59 9.22 4.86 23.92

Charlotte, NC San Francisco, CA (Metropolitan Area) 11.99 5.13 19.32 8.34 5.18 19.48

Charlotte, NC Miami, FL (Metropolitan Area) 7.56 3.43 14.16 13.23 7.07 29.19

Charlotte, NC Los Angeles, CA (Metropolitan Area) 7.22 2.71 13.19 13.86 7.58 36.98

Charlotte, NC Little Rock, AR 15.78 6.17 26.66 6.34 3.75 16.20

Charlotte, NC Louisville, KY 15.52 6.08 32.25 6.45 3.10 16.45

Charlotte, NC Sacramento, CA 23.64 10.89 37.08 4.23 2.70 9.18

Charlotte, NC Tampa, FL (Metropolitan Area) 6.50 2.90 11.57 15.37 8.64 34.54

Charlotte, NC Kansas City, MO 8.39 3.77 16.39 11.91 6.10 26.54

Charlotte, NC San Antonio, TX 17.07 7.79 28.47 5.86 3.51 12.83

Charlotte, NC Memphis, TN 10.11 4.25 18.33 9.90 5.46 23.54

Charlotte, NC Omaha, NE 12.83 5.18 23.04 7.80 4.34 19.32

Charlotte, NC Milwaukee, WI 10.13 4.64 18.25 9.87 5.48 21.55

Charlotte, NC New Orleans, LA 8.08 3.08 16.45 12.37 6.09 32.54

Charlotte, NC San Diego, CA 13.52 6.04 23.76 7.40 4.21 16.55

Charlotte, NC Norfolk, VA (Metropolitan Area) 10.29 3.87 17.08 9.72 5.85 25.81

Charlotte, NC Pensacola, FL 13.51 5.88 27.16 7.40 3.68 17.00

Charlotte, NC Oklahoma City, OK 15.41 6.64 26.20 6.49 3.82 15.07

Charlotte, NC West Palm Beach/Palm Beach, FL 12.75 5.21 21.49 7.84 4.65 19.18

Charlotte, NC Portland, OR 12.81 6.28 21.37 7.81 4.68 15.93

Charlotte, NC Philadelphia, PA 5.07 1.97 11.24 19.73 8.90 50.70

Charlotte, NC Portland, ME 13.08 5.34 23.38 7.65 4.28 18.74

Charlotte, NC Richmond, VA 6.18 2.88 11.97 16.17 8.35 34.77

Charlotte, NC Reno, NV 18.34 8.52 31.76 5.45 3.15 11.74

Charlotte, NC Rochester, NY 19.11 8.83 30.01 5.23 3.33 11.33

Charlotte, NC Salt Lake City, UT 11.34 4.92 20.70 8.82 4.83 20.31

Charlotte, NC Tulsa, OK 12.40 4.57 26.56 8.06 3.77 21.87

Charlotte, NC South Bend, IN 19.30 9.42 30.55 5.18 3.27 10.62

Charlotte, NC Sarasota/Bradenton, FL 10.88 3.94 20.14 9.19 4.97 25.35

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Charlotte, NC Syracuse, NY 11.49 5.24 20.47 8.70 4.89 19.10

Columbus, OH Dallas/Fort Worth, TX 5.98 2.40 11.32 16.72 8.83 41.68

Columbus, OH Denver, CO 6.61 2.88 11.77 15.14 8.49 34.72

Columbus, OH Tucson, AZ 10.92 4.63 18.95 9.15 5.28 21.60

Columbus, OH Phoenix, AZ 5.98 2.13 12.54 16.73 7.98 46.86

Columbus, OH Hartford, CT 35.71 20.92 48.47 2.80 2.06 4.78

Columbus, OH Seattle, WA 7.76 3.27 14.94 12.89 6.69 30.57

Columbus, OH El Paso, TX 14.19 6.69 25.99 7.04 3.85 14.95

Columbus, OH Nashville, TN 8.43 3.22 15.99 11.86 6.26 31.03

Columbus, OH Washington, DC (Metropolitan Area) 20.81 11.97 29.86 4.80 3.35 8.36

Columbus, OH St. Louis, MO 15.68 7.77 26.62 6.38 3.76 12.87

Columbus, OH Jacksonville, FL 10.39 5.00 18.69 9.63 5.35 20.00

Columbus, OH Detroit, MI 19.55 8.89 34.85 5.12 2.87 11.25

Columbus, OH Des Moines, IA 8.69 3.29 18.02 11.51 5.55 30.44

Columbus, OH Houston, TX 7.66 3.25 14.75 13.05 6.78 30.80

Columbus, OH Orlando, FL 15.35 6.95 27.69 6.52 3.61 14.39

Columbus, OH Minneapolis/St. Paul, MN 9.41 4.33 15.28 10.62 6.55 23.08

Columbus, OH New York City, NY (Metropolitan Area) 8.50 3.83 14.42 11.77 6.93 26.09

Columbus, OH Fort Myers, FL 13.97 6.44 24.46 7.16 4.09 15.54

Columbus, OH Greenville/Spartanburg, SC 13.86 6.16 23.34 7.22 4.28 16.25

Columbus, OH Greensboro/High Point, NC 9.23 3.52 16.52 10.83 6.05 28.38

Columbus, OH Las Vegas, NV 8.70 3.66 14.65 11.49 6.82 27.33

Columbus, OH Jackson/Vicksburg, MS 9.27 3.91 16.37 10.79 6.11 25.60

Columbus, OH San Francisco, CA (Metropolitan Area) 5.74 2.50 9.46 17.42 10.57 40.02

Columbus, OH Miami, FL (Metropolitan Area) 15.32 6.82 25.65 6.53 3.90 14.67

Columbus, OH Los Angeles, CA (Metropolitan Area) 7.45 3.19 12.57 13.43 7.95 31.33

Columbus, OH Little Rock, AR 14.65 6.23 26.57 6.82 3.76 16.06

Columbus, OH Sacramento, CA 12.89 5.11 21.86 7.76 4.57 19.56

Columbus, OH Tampa, FL (Metropolitan Area) 14.14 5.53 25.67 7.07 3.90 18.08

Columbus, OH Kansas City, MO 7.57 3.76 17.16 13.21 5.83 26.61

Columbus, OH San Antonio, TX 9.91 4.58 18.39 10.09 5.44 21.84

Columbus, OH Memphis, TN 20.61 8.62 35.96 4.85 2.78 11.60

Columbus, OH Omaha, NE 11.56 4.75 21.39 8.65 4.68 21.07

Columbus, OH Milwaukee, WI 21.87 8.84 41.41 4.57 2.42 11.31

Columbus, OH Madison, WI 10.04 4.05 17.76 9.96 5.63 24.71

Columbus, OH New Orleans, LA 12.63 5.29 25.50 7.92 3.92 18.89

Columbus, OH San Diego, CA 8.26 3.40 15.97 12.10 6.26 29.42

Columbus, OH Norfolk, VA (Metropolitan Area) 15.63 6.88 25.98 6.40 3.85 14.54

Columbus, OH Oklahoma City, OK 10.35 4.47 17.94 9.66 5.57 22.35

Columbus, OH West Palm Beach/Palm Beach, FL 12.99 6.03 23.66 7.70 4.23 16.59

Columbus, OH Portland, OR 12.34 5.83 21.42 8.10 4.67 17.16

Columbus, OH Philadelphia, PA 11.29 5.20 17.65 8.86 5.67 19.22

Columbus, OH Portland, ME 14.44 5.86 27.05 6.92 3.70 17.08

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Columbus, OH Raleigh/Durham, NC 7.41 3.09 16.16 13.50 6.19 32.32

Columbus, OH Richmond, VA 9.12 4.05 17.54 10.97 5.70 24.69

Columbus, OH Reno, NV 13.96 5.52 27.59 7.17 3.62 18.12

Columbus, OH Salt Lake City, UT 9.45 3.88 17.17 10.58 5.82 25.78

Columbus, OH Tulsa, OK 10.63 4.65 19.41 9.41 5.15 21.51

Columbus, OH Savannah, GA 15.16 6.59 25.38 6.60 3.94 15.18

Columbus, OH Sarasota/Bradenton, FL 22.30 11.18 36.96 4.49 2.71 8.95

Columbus, OH Syracuse, NY 8.66 3.90 14.98 11.54 6.68 25.65

Champaign/Urbana, IL Washington, DC (Metropolitan Area) 14.86 6.34 26.22 6.73 3.81 15.76

Champaign/Urbana, IL New York City, NY (Metropolitan Area) 9.09 3.43 17.22 11.00 5.81 29.18

Champaign/Urbana, IL San Francisco, CA (Metropolitan Area) 13.24 4.76 24.66 7.56 4.06 21.03

Champaign/Urbana, IL Los Angeles, CA (Metropolitan Area) 21.41 9.64 34.71 4.67 2.88 10.38

St. Louis, MO Tucson, AZ 11.43 5.28 21.76 8.75 4.60 18.94

St. Louis, MO Washington, DC (Metropolitan Area) 5.89 2.76 10.33 16.99 9.68 36.19

St. Louis, MO Wichita, KS 15.16 6.94 26.20 6.60 3.82 14.41

St. Louis, MO Valparaiso, FL 11.55 4.55 20.86 8.66 4.79 21.98

St. Louis, MO Tampa, FL (Metropolitan Area) 5.45 2.09 9.77 18.36 10.24 47.75

St. Louis, MO West Palm Beach/Palm Beach, FL 12.63 5.30 23.78 7.92 4.21 18.86

St. Louis, MO Tulsa, OK 19.72 7.93 35.41 5.07 2.82 12.62

St. Louis, MO Syracuse, NY 9.66 4.43 17.27 10.36 5.79 22.58

Myrtle Beach, SC Pittsburgh, PA 8.71 3.65 17.50 11.49 5.71 27.39

Myrtle Beach, SC Washington, DC (Metropolitan Area) 10.26 4.70 19.42 9.75 5.15 21.26

Myrtle Beach, SC Orlando, FL 11.68 5.30 20.84 8.56 4.80 18.88

Myrtle Beach, SC New York City, NY (Metropolitan Area) 9.77 3.74 18.36 10.24 5.45 26.73

Myrtle Beach, SC Tampa, FL (Metropolitan Area) 12.06 5.13 20.76 8.29 4.82 19.51

Myrtle Beach, SC Philadelphia, PA 15.17 6.51 24.57 6.59 4.07 15.35

Jacksonville, FL Pittsburgh, PA 8.84 3.72 16.12 11.31 6.20 26.91

Jacksonville, FL Phoenix, AZ 6.36 2.58 11.96 15.71 8.36 38.83

Jacksonville, FL Seattle, WA 9.77 4.39 17.34 10.23 5.77 22.80

Jacksonville, FL Nashville, TN 10.92 4.96 19.34 9.16 5.17 20.16

Jacksonville, FL Washington, DC (Metropolitan Area) 10.66 4.15 20.20 9.38 4.95 24.11

Jacksonville, FL St. Louis, MO 13.12 5.15 25.08 7.62 3.99 19.42

Jacksonville, FL Minneapolis/St. Paul, MN 9.72 3.77 18.39 10.28 5.44 26.50

Jacksonville, FL New York City, NY (Metropolitan Area) 7.50 3.18 13.89 13.33 7.20 31.47

Jacksonville, FL Las Vegas, NV 9.91 4.19 19.76 10.09 5.06 23.90

Jacksonville, FL San Francisco, CA (Metropolitan Area) 6.74 2.94 12.85 14.84 7.78 34.00

Jacksonville, FL Miami, FL (Metropolitan Area) 12.51 5.31 21.50 7.99 4.65 18.85

Jacksonville, FL Los Angeles, CA (Metropolitan Area) 6.76 2.84 12.89 14.80 7.76 35.17

Jacksonville, FL Little Rock, AR 17.68 7.84 30.23 5.65 3.31 12.75

Jacksonville, FL Louisville, KY 10.34 4.32 20.95 9.67 4.77 23.17

Jacksonville, FL Sacramento, CA 8.87 3.07 18.22 11.28 5.49 32.55

Jacksonville, FL Kansas City, MO 9.74 4.26 19.91 10.27 5.02 23.47

Jacksonville, FL San Antonio, TX 11.72 4.67 20.79 8.53 4.81 21.42

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Jacksonville, FL Memphis, TN 21.40 7.85 37.79 4.67 2.65 12.73

Jacksonville, FL Omaha, NE 10.58 4.71 20.83 9.46 4.80 21.25

Jacksonville, FL Milwaukee, WI 22.95 10.95 35.86 4.36 2.79 9.13

Jacksonville, FL New Orleans, LA 16.83 7.14 29.78 5.94 3.36 14.01

Jacksonville, FL San Diego, CA 13.65 6.15 23.66 7.33 4.23 16.26

Jacksonville, FL Norfolk, VA (Metropolitan Area) 12.09 5.52 20.25 8.27 4.94 18.12

Jacksonville, FL Oklahoma City, OK 9.94 3.42 20.41 10.06 4.90 29.24

Jacksonville, FL Portland, OR 8.69 3.30 15.21 11.51 6.57 30.31

Jacksonville, FL Philadelphia, PA 15.78 7.56 25.45 6.34 3.93 13.24

Jacksonville, FL Portland, ME 26.53 13.26 42.67 3.77 2.34 7.54

Jacksonville, FL Raleigh/Durham, NC 8.04 3.37 13.48 12.43 7.42 29.68

Jacksonville, FL Richmond, VA 19.08 9.02 29.49 5.24 3.39 11.09

Jacksonville, FL Rochester, NY 14.08 6.24 23.69 7.10 4.22 16.01

Jacksonville, FL Salt Lake City, UT 14.40 6.17 24.50 6.95 4.08 16.22

Jacksonville, FL Tulsa, OK 9.78 4.10 19.27 10.23 5.19 24.37

Jacksonville, FL Syracuse, NY 16.01 6.13 27.96 6.24 3.58 16.32

Jacksonville, FL Knoxville, TN 13.00 5.14 22.59 7.69 4.43 19.45

Corpus Christi, TX Dallas/Fort Worth, TX 21.29 10.32 34.62 4.70 2.89 9.69

Corpus Christi, TX Denver, CO 14.31 5.84 26.26 6.99 3.81 17.11

Corpus Christi, TX Phoenix, AZ 13.63 5.44 22.69 7.33 4.41 18.40

Corpus Christi, TX Nashville, TN 18.16 8.34 34.00 5.51 2.94 11.99

Corpus Christi, TX Washington, DC (Metropolitan Area) 12.75 5.82 22.11 7.85 4.52 17.18

Corpus Christi, TX St. Louis, MO 12.64 5.27 22.71 7.91 4.40 18.99

Corpus Christi, TX Houston, TX 17.54 7.41 34.18 5.70 2.93 13.50

Corpus Christi, TX Orlando, FL 15.64 6.58 29.68 6.39 3.37 15.19

Corpus Christi, TX New York City, NY (Metropolitan Area) 12.80 5.26 22.74 7.81 4.40 19.02

Corpus Christi, TX Las Vegas, NV 11.94 5.30 21.99 8.38 4.55 18.87

Corpus Christi, TX San Francisco, CA (Metropolitan Area) 10.91 5.32 20.95 9.17 4.77 18.81

Corpus Christi, TX Miami, FL (Metropolitan Area) 12.35 4.16 24.00 8.10 4.17 24.05

Corpus Christi, TX Los Angeles, CA (Metropolitan Area) 10.50 4.24 19.36 9.52 5.16 23.57

Corpus Christi, TX Tampa, FL (Metropolitan Area) 9.27 4.03 18.67 10.79 5.36 24.81

Corpus Christi, TX Kansas City, MO 13.65 5.83 27.27 7.33 3.67 17.15

Corpus Christi, TX New Orleans, LA 14.53 7.01 27.39 6.88 3.65 14.26

Corpus Christi, TX San Diego, CA 12.38 5.31 22.63 8.08 4.42 18.82

Corpus Christi, TX Oklahoma City, OK 10.97 3.90 19.45 9.12 5.14 25.66

Corpus Christi, TX Philadelphia, PA 18.37 9.25 30.86 5.44 3.24 10.81

Corpus Christi, TX Tulsa, OK 16.99 7.06 30.04 5.89 3.33 14.17

Charleston/Dunbar, WV Dallas/Fort Worth, TX 14.88 5.88 23.66 6.72 4.23 16.99

Charleston/Dunbar, WV Denver, CO 9.92 4.12 17.78 10.08 5.62 24.29

Charleston/Dunbar, WV Washington, DC (Metropolitan Area) 22.17 10.20 39.11 4.51 2.56 9.81

Charleston/Dunbar, WV Houston, TX 22.16 10.63 39.33 4.51 2.54 9.40

Charleston/Dunbar, WV Orlando, FL 20.83 9.59 33.82 4.80 2.96 10.43

Charleston/Dunbar, WV New York City, NY (Metropolitan Area) 19.71 9.98 30.54 5.07 3.27 10.02

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Charleston/Dunbar, WV San Francisco, CA (Metropolitan Area) 15.18 6.44 25.04 6.59 3.99 15.54

Charleston/Dunbar, WV Miami, FL (Metropolitan Area) 20.04 10.30 31.92 4.99 3.13 9.71

Charleston/Dunbar, WV Los Angeles, CA (Metropolitan Area) 17.64 8.16 26.59 5.67 3.76 12.25

Charleston/Dunbar, WV Tampa, FL (Metropolitan Area) 22.36 11.20 36.09 4.47 2.77 8.93

Charleston/Dunbar, WV Philadelphia, PA 15.51 6.29 28.04 6.45 3.57 15.90

Columbus, GA Washington, DC (Metropolitan Area) 13.62 5.65 24.50 7.34 4.08 17.69

Daytona Beach, FL Hartford, CT 14.16 5.83 25.12 7.06 3.98 17.16

Daytona Beach, FL Washington, DC (Metropolitan Area) 19.44 8.76 34.18 5.14 2.93 11.41

Daytona Beach, FL New York City, NY (Metropolitan Area) 17.55 7.77 33.05 5.70 3.03 12.87

Daytona Beach, FL Indianapolis, IN 26.67 12.43 43.05 3.75 2.32 8.04

Daytona Beach, FL Los Angeles, CA (Metropolitan Area) 18.75 8.77 32.52 5.33 3.07 11.41

Daytona Beach, FL Philadelphia, PA 12.65 5.30 24.35 7.91 4.11 18.88

Dayton, OH Denver, CO 11.65 5.35 23.89 8.59 4.19 18.69

Dayton, OH Phoenix, AZ 18.53 8.34 32.95 5.40 3.04 11.99

Dayton, OH Hartford, CT 6.85 3.28 12.98 14.61 7.72 30.47

Dayton, OH Seattle, WA 10.85 4.71 20.89 9.21 4.79 21.24

Dayton, OH Washington, DC (Metropolitan Area) 10.67 5.11 20.98 9.37 4.77 19.56

Dayton, OH Jacksonville, FL 11.63 5.29 22.63 8.60 4.42 18.90

Dayton, OH Houston, TX 12.93 5.25 24.18 7.73 4.14 19.09

Dayton, OH Orlando, FL 13.29 5.87 25.91 7.52 3.86 17.05

Dayton, OH Valparaiso, FL 9.32 3.99 18.84 10.72 5.31 25.06

Dayton, OH Minneapolis/St. Paul, MN 12.61 5.15 20.03 7.93 4.99 19.41

Dayton, OH New York City, NY (Metropolitan Area) 10.21 4.49 20.24 9.80 4.94 22.26

Dayton, OH Fort Myers, FL 16.09 7.01 30.16 6.21 3.32 14.27

Dayton, OH Las Vegas, NV 20.55 8.23 35.95 4.87 2.78 12.15

Dayton, OH San Francisco, CA (Metropolitan Area) 7.66 3.62 16.11 13.05 6.21 27.66

Dayton, OH Miami, FL (Metropolitan Area) 17.15 7.39 29.33 5.83 3.41 13.53

Dayton, OH Los Angeles, CA (Metropolitan Area) 11.11 4.48 21.36 9.00 4.68 22.32

Dayton, OH Tampa, FL (Metropolitan Area) 11.57 4.59 24.11 8.64 4.15 21.78

Dayton, OH Kansas City, MO 14.21 5.78 26.80 7.04 3.73 17.29

Dayton, OH San Antonio, TX 19.21 8.37 34.59 5.21 2.89 11.95

Dayton, OH Memphis, TN 10.09 4.29 20.54 9.91 4.87 23.28

Dayton, OH New Orleans, LA 14.60 6.03 26.91 6.85 3.72 16.60

Dayton, OH San Diego, CA 16.49 7.82 26.61 6.07 3.76 12.79

Dayton, OH Norfolk, VA (Metropolitan Area) 8.46 3.46 13.18 11.82 7.59 28.91

Dayton, OH Pensacola, FL 36.31 19.73 54.04 2.75 1.85 5.07

Dayton, OH Oklahoma City, OK 18.40 8.92 31.14 5.43 3.21 11.21

Dayton, OH West Palm Beach/Palm Beach, FL 17.23 8.52 31.38 5.80 3.19 11.74

Dayton, OH Philadelphia, PA 8.00 3.92 17.18 12.49 5.82 25.52

Dayton, OH Raleigh/Durham, NC 8.32 4.21 15.40 12.03 6.49 23.75

Dayton, OH Richmond, VA 15.97 8.33 27.49 6.26 3.64 12.01

Dayton, OH Salt Lake City, UT 15.38 6.50 28.55 6.50 3.50 15.37

Dayton, OH Sarasota/Bradenton, FL 23.13 10.72 40.45 4.32 2.47 9.33

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Detroit, MI Pittsburgh, PA 18.40 7.30 32.75 5.44 3.05 13.70

Detroit, MI Huntsville, AL 21.31 10.45 37.10 4.69 2.70 9.57

Detroit, MI Tucson, AZ 9.27 4.11 17.51 10.79 5.71 24.31

Detroit, MI Phoenix, AZ 6.31 2.57 11.91 15.85 8.39 38.94

Detroit, MI Shreveport, LA 12.25 4.64 23.47 8.16 4.26 21.56

Detroit, MI Hartford, CT 7.11 3.15 12.45 14.06 8.03 31.73

Detroit, MI Seattle, WA 11.80 4.77 20.79 8.47 4.81 20.97

Detroit, MI Mobile, AL 12.09 5.02 21.91 8.27 4.56 19.92

Detroit, MI El Paso, TX 7.24 3.14 13.57 13.81 7.37 31.89

Detroit, MI Nashville, TN 8.04 3.38 17.60 12.44 5.68 29.61

Detroit, MI Washington, DC (Metropolitan Area) 8.03 3.62 13.26 12.45 7.54 27.61

Detroit, MI Wichita, KS 15.46 5.98 27.88 6.47 3.59 16.71

Detroit, MI St. Louis, MO 16.47 6.81 28.94 6.07 3.46 14.68

Detroit, MI Myrtle Beach, SC 10.34 4.19 18.36 9.67 5.45 23.86

Detroit, MI Jacksonville, FL 12.88 5.75 22.81 7.76 4.38 17.40

Detroit, MI Houston, TX 10.12 4.44 17.30 9.88 5.78 22.51

Detroit, MI Orlando, FL 10.25 4.44 17.31 9.75 5.78 22.52

Detroit, MI Panama City, FL 35.78 16.56 55.99 2.80 1.79 6.04

Detroit, MI Valparaiso, FL 19.18 6.93 35.58 5.21 2.81 14.42

Detroit, MI Minneapolis/St. Paul, MN 12.35 5.58 19.54 8.10 5.12 17.92

Detroit, MI New York City, NY (Metropolitan Area) 8.07 3.49 14.22 12.39 7.03 28.64

Detroit, MI Fort Myers, FL 11.07 5.18 19.71 9.03 5.07 19.30

Detroit, MI Greenville/Spartanburg, SC 14.20 6.48 28.96 7.04 3.45 15.43

Detroit, MI Spokane, WA 14.41 5.63 24.58 6.94 4.07 17.77

Detroit, MI Green Bay, WI 10.85 4.42 19.42 9.22 5.15 22.64

Detroit, MI Greensboro/High Point, NC 17.18 6.88 31.59 5.82 3.17 14.53

Detroit, MI Harrisburg, PA 16.26 6.80 28.42 6.15 3.52 14.70

Detroit, MI Las Vegas, NV 7.21 2.97 12.29 13.86 8.14 33.64

Detroit, MI Indianapolis, IN 23.87 13.32 34.75 4.19 2.88 7.51

Detroit, MI Jackson/Vicksburg, MS 20.46 8.46 35.00 4.89 2.86 11.83

Detroit, MI San Francisco, CA (Metropolitan Area) 5.07 1.97 9.39 19.74 10.66 50.68

Detroit, MI Miami, FL (Metropolitan Area) 10.77 4.88 17.76 9.29 5.63 20.51

Detroit, MI Los Angeles, CA (Metropolitan Area) 6.34 2.62 11.44 15.76 8.74 38.15

Detroit, MI Little Rock, AR 11.98 6.23 24.59 8.35 4.07 16.05

Detroit, MI Louisville, KY 25.61 11.13 41.00 3.90 2.44 8.98

Detroit, MI Sacramento, CA 11.16 4.08 21.86 8.96 4.58 24.48

Detroit, MI Tampa, FL (Metropolitan Area) 10.84 5.10 19.19 9.23 5.21 19.61

Detroit, MI Kansas City, MO 12.40 5.04 21.70 8.06 4.61 19.83

Detroit, MI San Antonio, TX 7.50 3.33 13.34 13.33 7.50 30.03

Detroit, MI Memphis, TN 10.46 4.15 18.02 9.56 5.55 24.09

Detroit, MI Mission/McAllen/Edinburg, TX 10.61 4.35 17.54 9.42 5.70 22.99

Detroit, MI Montgomery, AL 10.31 4.03 20.25 9.70 4.94 24.79

Detroit, MI Omaha, NE 18.94 8.79 36.50 5.28 2.74 11.38

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Detroit, MI Milwaukee, WI 24.29 14.37 35.21 4.12 2.84 6.96

Detroit, MI Madison, WI 11.62 5.05 22.50 8.61 4.44 19.79

Detroit, MI New Orleans, LA 14.65 5.17 29.35 6.83 3.41 19.34

Detroit, MI San Diego, CA 5.42 1.97 10.67 18.44 9.37 50.69

Detroit, MI Norfolk, VA (Metropolitan Area) 12.41 5.73 20.72 8.06 4.83 17.45

Detroit, MI Pensacola, FL 10.95 3.95 19.35 9.13 5.17 25.35

Detroit, MI Oklahoma City, OK 16.63 7.63 30.65 6.01 3.26 13.11

Detroit, MI West Palm Beach/Palm Beach, FL 17.97 7.76 30.32 5.56 3.30 12.88

Detroit, MI Portland, OR 7.88 3.23 13.49 12.69 7.41 31.01

Detroit, MI Philadelphia, PA 9.58 4.66 15.15 10.44 6.60 21.47

Detroit, MI Palm Springs, CA 14.96 6.20 26.16 6.68 3.82 16.13

Detroit, MI Raleigh/Durham, NC 9.02 3.97 15.82 11.09 6.32 25.20

Detroit, MI Richmond, VA 18.09 6.94 34.03 5.53 2.94 14.42

Detroit, MI Reno, NV 17.63 7.80 34.14 5.67 2.93 12.82

Detroit, MI Rochester, NY 19.19 7.70 36.02 5.21 2.78 12.98

Detroit, MI Salt Lake City, UT 7.80 3.08 14.31 12.82 6.99 32.46

Detroit, MI Tulsa, OK 16.12 6.64 29.25 6.20 3.42 15.06

Detroit, MI Savannah, GA 25.03 10.70 40.60 3.99 2.46 9.35

Detroit, MI Syracuse, NY 11.03 4.44 20.44 9.07 4.89 22.52

Detroit, MI Tallahassee, FL 13.25 5.77 23.64 7.55 4.23 17.33

Detroit, MI Knoxville, TN 12.00 4.27 22.69 8.33 4.41 23.48

Dothan, AL Washington, DC (Metropolitan Area) 12.29 6.09 22.92 8.13 4.36 16.41

Duluth, MN Phoenix, AZ 21.23 9.88 35.72 4.71 2.80 10.12

Duluth, MN Washington, DC (Metropolitan Area) 13.29 5.82 23.02 7.52 4.34 17.18

Duluth, MN New York City, NY (Metropolitan Area) 21.55 10.93 33.13 4.64 3.02 9.15

Duluth, MN Los Angeles, CA (Metropolitan Area) 31.98 15.29 45.20 3.13 2.21 6.54

Des Moines, IA Pittsburgh, PA 6.92 2.46 13.25 14.44 7.55 40.66

Des Moines, IA Phoenix, AZ 23.73 11.09 39.97 4.21 2.50 9.01

Des Moines, IA Hartford, CT 10.84 4.38 20.17 9.22 4.96 22.84

Des Moines, IA Seattle, WA 12.66 5.71 21.03 7.90 4.76 17.51

Des Moines, IA Nashville, TN 11.96 4.95 21.77 8.36 4.59 20.18

Des Moines, IA Washington, DC (Metropolitan Area) 14.56 5.60 24.82 6.87 4.03 17.85

Des Moines, IA Detroit, MI 11.86 4.85 24.21 8.43 4.13 20.60

Des Moines, IA Houston, TX 16.71 6.88 31.23 5.98 3.20 14.54

Des Moines, IA Orlando, FL 27.74 14.55 42.80 3.60 2.34 6.87

Des Moines, IA Minneapolis/St. Paul, MN 13.49 5.63 25.34 7.41 3.95 17.77

Des Moines, IA New York City, NY (Metropolitan Area) 7.40 3.55 14.98 13.52 6.68 28.20

Des Moines, IA Fort Myers, FL 20.76 9.20 33.18 4.82 3.01 10.87

Des Moines, IA Las Vegas, NV 13.80 6.22 26.25 7.25 3.81 16.07

Des Moines, IA Indianapolis, IN 7.71 3.69 14.37 12.98 6.96 27.12

Des Moines, IA San Francisco, CA (Metropolitan Area) 8.02 3.50 14.70 12.48 6.80 28.54

Des Moines, IA Miami, FL (Metropolitan Area) 13.30 5.78 22.55 7.52 4.43 17.30

Des Moines, IA Los Angeles, CA (Metropolitan Area) 15.20 7.33 25.08 6.58 3.99 13.65

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Des Moines, IA Louisville, KY 12.33 4.85 22.36 8.11 4.47 20.61

Des Moines, IA Sacramento, CA 13.17 5.85 22.87 7.60 4.37 17.08

Des Moines, IA Tampa, FL (Metropolitan Area) 14.50 6.38 26.10 6.90 3.83 15.66

Des Moines, IA San Antonio, TX 9.29 3.79 17.03 10.76 5.87 26.37

Des Moines, IA San Diego, CA 14.96 6.19 25.89 6.68 3.86 16.15

Des Moines, IA Portland, OR 17.49 7.75 27.82 5.72 3.59 12.90

Des Moines, IA Philadelphia, PA 6.26 2.58 11.64 15.99 8.59 38.80

Des Moines, IA Raleigh/Durham, NC 9.47 3.72 16.98 10.56 5.89 26.88

Des Moines, IA Salt Lake City, UT 6.85 3.79 10.82 14.60 9.24 26.40

Houston, TX Pittsburgh, PA 7.09 2.81 12.75 14.10 7.84 35.61

Houston, TX Huntsville, AL 15.65 7.44 32.59 6.39 3.07 13.45

Houston, TX Tucson, AZ 10.97 4.29 21.22 9.12 4.71 23.31

Houston, TX Phoenix, AZ 5.49 2.28 9.45 18.23 10.58 43.80

Houston, TX Seattle, WA 6.15 2.76 11.28 16.27 8.87 36.24

Houston, TX Nashville, TN 14.79 6.15 29.10 6.76 3.44 16.25

Houston, TX Washington, DC (Metropolitan Area) 10.49 5.81 17.29 9.54 5.78 17.22

Houston, TX St. Louis, MO 23.65 9.49 39.65 4.23 2.52 10.53

Houston, TX Jacksonville, FL 9.96 3.37 19.05 10.04 5.25 29.66

Houston, TX Orlando, FL 9.98 4.01 18.40 10.02 5.43 24.92

Houston, TX Minneapolis/St. Paul, MN 8.81 4.31 14.67 11.36 6.81 23.21

Houston, TX New York City, NY (Metropolitan Area) 7.78 3.78 13.67 12.85 7.32 26.47

Houston, TX Sioux Falls, SD 13.29 5.47 24.01 7.52 4.16 18.29

Houston, TX Spokane, WA 13.81 5.45 24.27 7.24 4.12 18.34

Houston, TX Las Vegas, NV 5.56 2.31 11.09 17.98 9.02 43.38

Houston, TX Indianapolis, IN 11.20 4.90 19.94 8.93 5.02 20.41

Houston, TX Jackson/Vicksburg, MS 13.44 5.11 24.10 7.44 4.15 19.59

Houston, TX San Francisco, CA (Metropolitan Area) 6.98 3.22 13.45 14.32 7.44 31.08

Houston, TX Miami, FL (Metropolitan Area) 9.27 4.33 15.83 10.78 6.32 23.11

Houston, TX Los Angeles, CA (Metropolitan Area) 6.38 2.32 11.38 15.67 8.78 43.10

Houston, TX Little Rock, AR 20.84 8.36 39.52 4.80 2.53 11.97

Houston, TX Lubbock, TX 21.45 8.06 35.59 4.66 2.81 12.41

Houston, TX Lexington, KY 20.58 7.87 40.63 4.86 2.46 12.70

Houston, TX Louisville, KY 15.63 6.55 25.98 6.40 3.85 15.30

Houston, TX Midland/Odessa, TX 12.20 5.77 20.78 8.20 4.81 17.32

Houston, TX Sacramento, CA 6.25 2.18 11.79 15.99 8.48 45.83

Houston, TX Tampa, FL (Metropolitan Area) 7.10 3.05 13.20 14.08 7.58 32.83

Houston, TX Kansas City, MO 12.46 4.98 22.07 8.02 4.53 20.07

Houston, TX San Antonio, TX 26.95 12.55 41.00 3.71 2.44 7.97

Houston, TX Memphis, TN 19.71 8.99 36.75 5.07 2.72 11.12

Houston, TX Mission/McAllen/Edinburg, TX 10.57 4.08 20.89 9.46 4.79 24.53

Houston, TX Omaha, NE 17.39 7.30 31.89 5.75 3.14 13.71

Houston, TX Milwaukee, WI 24.41 11.90 41.02 4.10 2.44 8.40

Houston, TX Quad Cities, IL (Metropolitan Area) 13.46 6.07 23.56 7.43 4.24 16.47

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Houston, TX Madison, WI 10.58 4.66 19.91 9.45 5.02 21.47

Houston, TX New Orleans, LA 8.70 3.33 18.71 11.49 5.34 30.02

Houston, TX San Diego, CA 5.45 2.17 11.00 18.36 9.09 46.05

Houston, TX Norfolk, VA (Metropolitan Area) 12.12 5.11 24.07 8.25 4.15 19.55

Houston, TX Pensacola, FL 21.93 9.06 37.20 4.56 2.69 11.04

Houston, TX Oklahoma City, OK 12.00 4.28 24.15 8.33 4.14 23.36

Houston, TX West Palm Beach/Palm Beach, FL 8.18 3.48 16.88 12.23 5.93 28.71

Houston, TX Portland, OR 5.63 2.19 10.52 17.78 9.51 45.67

Houston, TX Philadelphia, PA 6.41 2.81 11.26 15.59 8.88 35.53

Houston, TX Portland, ME 8.85 3.57 15.63 11.30 6.40 28.04

Houston, TX Raleigh/Durham, NC 8.16 3.67 14.67 12.26 6.82 27.21

Houston, TX Richmond, VA 21.68 9.40 36.92 4.61 2.71 10.64

Houston, TX Reno, NV 8.23 3.58 16.09 12.15 6.22 27.97

Houston, TX Roanoke, VA 9.02 4.03 17.51 11.08 5.71 24.78

Houston, TX Rochester, NY 10.23 5.00 17.16 9.78 5.83 20.00

Houston, TX Salt Lake City, UT 5.43 2.46 10.24 18.42 9.77 40.70

Houston, TX Tulsa, OK 10.49 4.54 20.80 9.53 4.81 22.05

Houston, TX Savannah, GA 21.45 8.87 39.99 4.66 2.50 11.27

Houston, TX Springfield, MO 16.81 7.79 27.97 5.95 3.57 12.84

Houston, TX Syracuse, NY 12.85 5.39 23.12 7.78 4.32 18.57

Houston, TX Knoxville, TN 24.05 10.25 41.37 4.16 2.42 9.76

Orlando, FL Pittsburgh, PA 8.42 3.00 16.10 11.88 6.21 33.37

Orlando, FL Scranton/Wilkes-Barre, PA 14.35 5.74 26.41 6.97 3.79 17.41

Orlando, FL Tucson, AZ 14.69 6.71 25.33 6.81 3.95 14.90

Orlando, FL Phoenix, AZ 5.92 2.61 11.17 16.89 8.95 38.24

Orlando, FL Shreveport, LA 20.52 9.11 36.82 4.87 2.72 10.98

Orlando, FL Seattle, WA 5.78 2.16 10.84 17.29 9.22 46.32

Orlando, FL Washington, DC (Metropolitan Area) 8.93 4.18 17.22 11.19 5.81 23.90

Orlando, FL Wichita, KS 17.66 7.32 30.05 5.66 3.33 13.66

Orlando, FL St. Louis, MO 7.70 3.88 13.49 12.99 7.41 25.78

Orlando, FL Sioux Falls, SD 20.84 9.06 35.95 4.80 2.78 11.04

Orlando, FL Spokane, WA 11.16 4.64 21.29 8.96 4.70 21.56

Orlando, FL Wilmington, NC 13.91 5.46 25.60 7.19 3.91 18.32

Orlando, FL San Francisco, CA (Metropolitan Area) 7.79 3.16 14.78 12.84 6.77 31.60

Orlando, FL Sacramento, CA 12.47 5.71 21.71 8.02 4.61 17.52

Orlando, FL San Antonio, TX 7.77 3.57 14.28 12.87 7.00 28.00

Orlando, FL Quad Cities, IL (Metropolitan Area) 19.90 8.57 33.44 5.03 2.99 11.67

Orlando, FL San Diego, CA 7.36 3.21 13.97 13.58 7.16 31.12

Orlando, FL Portland, OR 5.80 2.75 11.15 17.25 8.97 36.33

Orlando, FL Philadelphia, PA 8.38 3.50 15.43 11.93 6.48 28.58

Orlando, FL Portland, ME 21.19 9.14 37.82 4.72 2.64 10.94

Orlando, FL Rapid City, SD 25.22 11.82 40.35 3.96 2.48 8.46

Orlando, FL Raleigh/Durham, NC 14.23 6.79 25.52 7.03 3.92 14.74

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Orlando, FL Richmond, VA 13.43 6.24 24.22 7.45 4.13 16.03

Orlando, FL Reno, NV 13.40 5.78 24.97 7.46 4.01 17.30

Orlando, FL Roanoke, VA 11.60 4.90 20.98 8.62 4.77 20.39

Orlando, FL Rochester, NY 10.10 4.59 18.25 9.90 5.48 21.79

Orlando, FL Salt Lake City, UT 8.07 3.20 14.39 12.39 6.95 31.27

Orlando, FL Tulsa, OK 10.34 4.42 17.40 9.67 5.75 22.62

Orlando, FL Santa Barbara, CA 15.64 6.23 26.54 6.39 3.77 16.05

Orlando, FL South Bend, IN 18.57 8.19 32.16 5.38 3.11 12.20

Orlando, FL Philipsburg/State College, PA 11.64 4.68 23.30 8.59 4.29 21.39

Orlando, FL Springfield, MO 20.85 9.60 35.74 4.80 2.80 10.42

Orlando, FL Syracuse, NY 16.12 6.61 30.74 6.20 3.25 15.12

Orlando, FL Traverse City, MI 18.16 9.35 30.18 5.51 3.31 10.70

Panama City, FL Washington, DC (Metropolitan Area) 23.07 10.41 37.23 4.34 2.69 9.60

Panama City, FL Philadelphia, PA 13.59 6.04 22.73 7.36 4.40 16.55

Valparaiso, FL Washington, DC (Metropolitan Area) 11.31 4.99 19.98 8.84 5.01 20.03

Elmira/Corning, NY Tampa, FL (Metropolitan Area) 22.84 9.27 40.39 4.38 2.48 10.79

Erie, PA Orlando, FL 25.84 12.79 40.09 3.87 2.49 7.82

Erie, PA Los Angeles, CA (Metropolitan Area) 14.51 6.33 23.41 6.89 4.27 15.80

Eugene, OR Phoenix, AZ 15.30 6.51 27.39 6.54 3.65 15.36

Eugene, OR Seattle, WA 10.58 4.33 18.86 9.45 5.30 23.12

Eugene, OR Washington, DC (Metropolitan Area) 9.60 4.29 19.20 10.41 5.21 23.29

Eugene, OR New York City, NY (Metropolitan Area) 9.25 3.98 19.74 10.81 5.07 25.11

Eugene, OR Las Vegas, NV 9.95 4.36 18.69 10.05 5.35 22.93

Eugene, OR San Francisco, CA (Metropolitan Area) 23.78 9.76 36.01 4.21 2.78 10.25

Eugene, OR Los Angeles, CA (Metropolitan Area) 15.69 7.06 26.93 6.37 3.71 14.16

Eugene, OR San Diego, CA 14.55 6.01 26.64 6.87 3.75 16.65

Evansville, IN Washington, DC (Metropolitan Area) 9.05 4.15 16.15 11.05 6.19 24.07

Evansville, IN Orlando, FL 16.44 7.65 28.68 6.08 3.49 13.06

Evansville, IN New York City, NY (Metropolitan Area) 13.19 6.41 23.14 7.58 4.32 15.61

Evansville, IN Miami, FL (Metropolitan Area) 28.75 13.41 44.80 3.48 2.23 7.46

Evansville, IN Los Angeles, CA (Metropolitan Area) 15.21 5.72 27.95 6.57 3.58 17.49

New Bern/Morehead/Beaufort, NC New York City, NY (Metropolitan Area) 26.13 13.31 39.49 3.83 2.53 7.51

Key West, FL Washington, DC (Metropolitan Area) 22.57 11.10 35.44 4.43 2.82 9.01

Key West, FL New York City, NY (Metropolitan Area) 23.99 9.70 42.07 4.17 2.38 10.31

Key West, FL Miami, FL (Metropolitan Area) 20.21 10.13 33.64 4.95 2.97 9.87

Key West, FL Philadelphia, PA 25.76 12.50 40.96 3.88 2.44 8.00

Fargo, ND Phoenix, AZ 13.74 4.83 26.29 7.28 3.80 20.70

Fargo, ND Seattle, WA 20.77 10.52 32.55 4.81 3.07 9.51

Fargo, ND Washington, DC (Metropolitan Area) 10.30 4.35 19.31 9.71 5.18 22.97

Fargo, ND St. Louis, MO 12.23 4.82 20.63 8.18 4.85 20.76

Fargo, ND Orlando, FL 25.51 12.29 42.89 3.92 2.33 8.13

Fargo, ND Minneapolis/St. Paul, MN 13.25 5.39 26.03 7.55 3.84 18.57

Fargo, ND New York City, NY (Metropolitan Area) 13.36 5.67 21.98 7.49 4.55 17.65

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Fargo, ND Las Vegas, NV 21.05 9.88 36.52 4.75 2.74 10.13

Fargo, ND San Francisco, CA (Metropolitan Area) 14.36 6.48 25.26 6.96 3.96 15.43

Fargo, ND Los Angeles, CA (Metropolitan Area) 25.93 13.55 37.17 3.86 2.69 7.38

Fargo, ND Kansas City, MO 30.68 20.98 40.12 3.26 2.49 4.77

Fargo, ND San Diego, CA 16.52 6.87 26.90 6.05 3.72 14.55

Fresno, CA Seattle, WA 12.87 5.56 23.46 7.77 4.26 17.99

Fresno, CA Washington, DC (Metropolitan Area) 11.29 5.09 20.40 8.85 4.90 19.64

Fresno, CA Houston, TX 13.40 5.93 23.17 7.47 4.32 16.85

Fresno, CA Orlando, FL 20.99 8.17 38.60 4.76 2.59 12.24

Fresno, CA Minneapolis/St. Paul, MN 9.78 3.78 18.99 10.23 5.26 26.46

Fresno, CA New York City, NY (Metropolitan Area) 11.04 5.22 20.84 9.06 4.80 19.16

Fresno, CA Miami, FL (Metropolitan Area) 17.16 8.21 29.68 5.83 3.37 12.18

Fresno, CA Los Angeles, CA (Metropolitan Area) 13.91 6.32 25.48 7.19 3.92 15.82

Fresno, CA Kansas City, MO 17.02 7.36 28.34 5.87 3.53 13.59

Fresno, CA Portland, OR 15.28 6.55 28.21 6.54 3.54 15.27

Fresno, CA Philadelphia, PA 18.09 8.72 27.68 5.53 3.61 11.46

Fayetteville, NC New York City, NY (Metropolitan Area) 13.23 6.04 24.02 7.56 4.16 16.56

Fayetteville, NC Miami, FL (Metropolitan Area) 9.51 3.79 18.53 10.52 5.40 26.42

Fayetteville, NC Tampa, FL (Metropolitan Area) 8.33 3.37 16.80 12.01 5.95 29.65

Kalispell, MT Phoenix, AZ 15.98 6.69 27.63 6.26 3.62 14.95

Kalispell, MT Seattle, WA 12.67 5.03 21.66 7.89 4.62 19.86

Kalispell, MT San Francisco, CA (Metropolitan Area) 11.21 4.60 20.22 8.92 4.95 21.75

Kalispell, MT Los Angeles, CA (Metropolitan Area) 12.29 5.40 22.18 8.14 4.51 18.51

Kalispell, MT San Diego, CA 20.46 8.58 36.45 4.89 2.74 11.66

Minneapolis/St. Paul, MN Pittsburgh, PA 5.85 2.52 10.79 17.09 9.27 39.62

Minneapolis/St. Paul, MN Tucson, AZ 19.48 8.97 30.93 5.13 3.23 11.15

Minneapolis/St. Paul, MN Phoenix, AZ 4.55 1.86 9.63 21.99 10.38 53.69

Minneapolis/St. Paul, MN Seattle, WA 4.55 1.98 9.41 21.99 10.62 50.57

Minneapolis/St. Paul, MN Nashville, TN 15.45 7.38 23.80 6.47 4.20 13.56

Minneapolis/St. Paul, MN Washington, DC (Metropolitan Area) 6.53 2.71 11.72 15.32 8.53 36.87

Minneapolis/St. Paul, MN St. Louis, MO 7.89 3.61 12.96 12.67 7.71 27.70

Minneapolis/St. Paul, MN Myrtle Beach, SC 13.53 6.18 24.40 7.39 4.10 16.18

Minneapolis/St. Paul, MN Orlando, FL 5.58 2.16 10.84 17.93 9.22 46.33

Minneapolis/St. Paul, MN Valparaiso, FL 19.94 8.07 36.43 5.02 2.75 12.39

Minneapolis/St. Paul, MN New York City, NY (Metropolitan Area) 6.12 2.46 10.68 16.35 9.37 40.59

Minneapolis/St. Paul, MN Sioux Falls, SD 14.80 7.88 24.96 6.76 4.01 12.69

Minneapolis/St. Paul, MN Spokane, WA 12.28 5.80 20.13 8.15 4.97 17.24

Minneapolis/St. Paul, MN San Francisco, CA (Metropolitan Area) 5.64 2.40 10.39 17.72 9.63 41.65

Minneapolis/St. Paul, MN Sacramento, CA 8.97 4.00 16.19 11.15 6.18 25.00

Minneapolis/St. Paul, MN Tampa, FL (Metropolitan Area) 8.52 3.93 14.50 11.74 6.89 25.45

Minneapolis/St. Paul, MN San Antonio, TX 19.33 9.92 29.97 5.17 3.34 10.08

Minneapolis/St. Paul, MN Minot, ND 14.38 6.66 24.56 6.95 4.07 15.00

Minneapolis/St. Paul, MN Omaha, NE 13.58 6.57 22.07 7.36 4.53 15.23

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Minneapolis/St. Paul, MN Missoula, MT 11.70 5.01 21.18 8.54 4.72 19.97

Minneapolis/St. Paul, MN New Orleans, LA 15.70 6.65 28.93 6.37 3.46 15.04

Minneapolis/St. Paul, MN San Diego, CA 5.99 2.55 11.13 16.69 8.99 39.25

Minneapolis/St. Paul, MN Norfolk, VA (Metropolitan Area) 7.27 3.35 12.35 13.76 8.09 29.89

Minneapolis/St. Paul, MN Pensacola, FL 39.68 24.38 53.82 2.52 1.86 4.10

Minneapolis/St. Paul, MN Oklahoma City, OK 15.92 7.26 28.92 6.28 3.46 13.78

Minneapolis/St. Paul, MN West Palm Beach/Palm Beach, FL 17.90 7.95 29.49 5.59 3.39 12.59

Minneapolis/St. Paul, MN Portland, OR 13.10 6.69 19.96 7.64 5.01 14.94

Minneapolis/St. Paul, MN Philadelphia, PA 4.61 1.90 8.54 21.68 11.71 52.63

Minneapolis/St. Paul, MN Peoria, IL 12.04 5.33 21.51 8.30 4.65 18.77

Minneapolis/St. Paul, MN Palm Springs, CA 11.08 4.77 20.95 9.02 4.77 20.96

Minneapolis/St. Paul, MN Portland, ME 15.63 6.36 28.68 6.40 3.49 15.71

Minneapolis/St. Paul, MN Rapid City, SD 16.14 7.78 26.25 6.20 3.81 12.85

Minneapolis/St. Paul, MN Raleigh/Durham, NC 8.64 3.58 15.18 11.58 6.59 27.92

Minneapolis/St. Paul, MN Richmond, VA 16.99 6.59 31.53 5.89 3.17 15.17

Minneapolis/St. Paul, MN Reno, NV 12.33 5.35 22.04 8.11 4.54 18.68

Minneapolis/St. Paul, MN Rochester, NY 9.98 3.78 18.65 10.02 5.36 26.46

Minneapolis/St. Paul, MN Salt Lake City, UT 8.50 3.88 14.08 11.76 7.10 25.76

Minneapolis/St. Paul, MN Tulsa, OK 13.81 5.71 24.92 7.24 4.01 17.57

Minneapolis/St. Paul, MN Savannah, GA 14.98 7.38 25.49 6.68 3.92 13.55

Minneapolis/St. Paul, MN Santa Barbara, CA 13.75 6.97 23.59 7.27 4.24 14.34

Minneapolis/St. Paul, MN Sarasota/Bradenton, FL 20.61 9.53 35.35 4.85 2.83 10.49

Minneapolis/St. Paul, MN Syracuse, NY 16.34 7.47 26.10 6.12 3.83 13.39

Minneapolis/St. Paul, MN Tallahassee, FL 22.73 11.04 35.84 4.40 2.79 9.06

New York City, NY (Metropolitan Area) Pittsburgh, PA 4.90 1.98 8.84 20.43 11.31 50.45

New York City, NY (Metropolitan Area) Wausau/Mosinee/Stevens Point, WI 12.32 5.27 20.79 8.12 4.81 18.99

New York City, NY (Metropolitan Area) Tucson, AZ 22.45 11.59 34.27 4.45 2.92 8.63

New York City, NY (Metropolitan Area) Phoenix, AZ 7.10 3.20 11.87 14.09 8.43 31.27

New York City, NY (Metropolitan Area) Shreveport, LA 12.57 5.33 23.61 7.96 4.24 18.76

New York City, NY (Metropolitan Area) Seattle, WA 5.88 3.06 9.70 17.01 10.31 32.65

New York City, NY (Metropolitan Area) Washington, DC (Metropolitan Area) 15.84 6.35 28.45 6.31 3.52 15.74

New York City, NY (Metropolitan Area) Wichita, KS 16.49 7.94 25.95 6.06 3.85 12.59

New York City, NY (Metropolitan Area) St. Louis, MO 5.46 2.47 9.18 18.32 10.89 40.54

New York City, NY (Metropolitan Area) Orlando, FL 9.26 3.57 17.69 10.80 5.65 28.03

New York City, NY (Metropolitan Area) Panama City, FL 14.65 6.40 26.10 6.83 3.83 15.63

New York City, NY (Metropolitan Area) Valparaiso, FL 12.07 5.41 21.50 8.28 4.65 18.47

New York City, NY (Metropolitan Area) Sioux Falls, SD 10.80 4.17 20.20 9.26 4.95 23.99

New York City, NY (Metropolitan Area) Spokane, WA 8.44 3.67 15.58 11.85 6.42 27.26

New York City, NY (Metropolitan Area) Wilmington, NC 36.66 17.56 52.85 2.73 1.89 5.70

New York City, NY (Metropolitan Area) San Francisco, CA (Metropolitan Area) 4.34 1.85 7.77 23.03 12.87 54.18

New York City, NY (Metropolitan Area) Rochester, MN 17.79 8.13 31.10 5.62 3.22 12.30

New York City, NY (Metropolitan Area) Saginaw/Bay City/Midland, MI 9.71 4.44 16.90 10.30 5.92 22.53

New York City, NY (Metropolitan Area) Sacramento, CA 19.76 10.87 29.92 5.06 3.34 9.20

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

New York City, NY (Metropolitan Area) Tampa, FL (Metropolitan Area) 13.36 5.69 21.33 7.48 4.69 17.57

New York City, NY (Metropolitan Area) San Antonio, TX 9.01 4.56 16.53 11.10 6.05 21.92

New York City, NY (Metropolitan Area) Omaha, NE 9.34 3.50 19.47 10.70 5.14 28.62

New York City, NY (Metropolitan Area) Quad Cities, IL (Metropolitan Area) 11.63 5.21 20.24 8.60 4.94 19.18

New York City, NY (Metropolitan Area) San Diego, CA 9.56 4.20 16.42 10.46 6.09 23.80

New York City, NY (Metropolitan Area) Norfolk, VA (Metropolitan Area) 12.75 5.84 23.32 7.84 4.29 17.13

New York City, NY (Metropolitan Area) Pensacola, FL 25.63 13.39 37.41 3.90 2.67 7.47

New York City, NY (Metropolitan Area) Oklahoma City, OK 11.31 4.99 19.54 8.84 5.12 20.04

New York City, NY (Metropolitan Area) West Palm Beach/Palm Beach, FL 10.45 4.42 19.36 9.57 5.17 22.64

New York City, NY (Metropolitan Area) Portland, OR 10.16 4.86 16.20 9.84 6.17 20.60

New York City, NY (Metropolitan Area) Philadelphia, PA 25.05 11.38 42.20 3.99 2.37 8.79

New York City, NY (Metropolitan Area) Peoria, IL 8.81 3.34 15.40 11.35 6.49 29.91

New York City, NY (Metropolitan Area) Palm Springs, CA 12.52 5.22 23.50 7.98 4.26 19.14

New York City, NY (Metropolitan Area) Portland, ME 4.65 1.89 8.89 21.52 11.24 52.82

New York City, NY (Metropolitan Area) Raleigh/Durham, NC 5.16 2.21 9.27 19.40 10.79 45.21

New York City, NY (Metropolitan Area) Richmond, VA 7.52 3.15 13.59 13.30 7.36 31.79

New York City, NY (Metropolitan Area) Reno, NV 19.92 9.57 32.00 5.02 3.13 10.45

New York City, NY (Metropolitan Area) Roanoke, VA 10.89 3.55 20.09 9.18 4.98 28.19

New York City, NY (Metropolitan Area) Rochester, NY 4.35 2.09 9.65 22.99 10.37 47.76

New York City, NY (Metropolitan Area) Salt Lake City, UT 6.19 2.74 12.24 16.15 8.17 36.54

New York City, NY (Metropolitan Area) Tulsa, OK 9.94 4.44 18.09 10.06 5.53 22.54

New York City, NY (Metropolitan Area) Savannah, GA 18.09 7.63 29.74 5.53 3.36 13.10

New York City, NY (Metropolitan Area) Santa Barbara, CA 11.57 5.15 21.74 8.64 4.60 19.44

New York City, NY (Metropolitan Area) South Bend, IN 14.84 7.13 23.85 6.74 4.19 14.02

New York City, NY (Metropolitan Area) Springfield, MO 8.47 3.08 14.89 11.81 6.72 32.45

New York City, NY (Metropolitan Area) Salinas/Monterey, CA 9.93 4.08 18.70 10.07 5.35 24.51

New York City, NY (Metropolitan Area) Sarasota/Bradenton, FL 17.47 8.28 32.07 5.72 3.12 12.08

New York City, NY (Metropolitan Area) Syracuse, NY 9.58 4.52 17.63 10.43 5.67 22.14

New York City, NY (Metropolitan Area) Tallahassee, FL 14.37 6.50 24.55 6.96 4.07 15.38

New York City, NY (Metropolitan Area) Traverse City, MI 12.85 5.90 21.71 7.78 4.61 16.94

Fort Myers, FL Pittsburgh, PA 11.28 4.73 22.04 8.86 4.54 21.16

Fort Myers, FL Scranton/Wilkes-Barre, PA 11.44 4.92 22.33 8.74 4.48 20.34

Fort Myers, FL Phoenix, AZ 13.45 6.62 22.94 7.43 4.36 15.11

Fort Myers, FL Hartford, CT 19.57 9.08 32.03 5.11 3.12 11.01

Fort Myers, FL Seattle, WA 12.60 5.94 22.67 7.94 4.41 16.84

Fort Myers, FL Nashville, TN 20.59 9.02 34.99 4.86 2.86 11.08

Fort Myers, FL Washington, DC (Metropolitan Area) 12.10 5.29 21.21 8.26 4.71 18.91

Fort Myers, FL St. Louis, MO 19.98 9.03 33.37 5.00 3.00 11.07

Fort Myers, FL Houston, TX 13.72 5.78 23.81 7.29 4.20 17.31

Fort Myers, FL Minneapolis/St. Paul, MN 17.68 8.67 28.53 5.65 3.50 11.54

Fort Myers, FL New York City, NY (Metropolitan Area) 9.38 4.15 17.01 10.66 5.88 24.10

Fort Myers, FL Grand Rapids, MI 15.40 6.65 27.76 6.49 3.60 15.04

Fort Myers, FL Greensboro/High Point, NC 10.20 4.81 19.69 9.80 5.08 20.79

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Fort Myers, FL Harrisburg, PA 15.99 6.97 27.40 6.25 3.65 14.34

Fort Myers, FL Las Vegas, NV 14.14 5.64 27.93 7.07 3.58 17.72

Fort Myers, FL Indianapolis, IN 11.99 5.44 21.13 8.34 4.73 18.38

Fort Myers, FL San Francisco, CA (Metropolitan Area) 6.97 3.00 13.89 14.34 7.20 33.39

Fort Myers, FL Los Angeles, CA (Metropolitan Area) 10.54 3.83 20.03 9.49 4.99 26.11

Fort Myers, FL Louisville, KY 14.63 6.44 26.12 6.84 3.83 15.54

Fort Myers, FL Kansas City, MO 20.01 8.53 32.96 5.00 3.03 11.73

Fort Myers, FL San Antonio, TX 11.89 4.27 20.53 8.41 4.87 23.43

Fort Myers, FL Memphis, TN 13.03 6.00 22.95 7.67 4.36 16.67

Fort Myers, FL Omaha, NE 16.08 6.83 27.43 6.22 3.65 14.63

Fort Myers, FL Milwaukee, WI 16.34 6.83 26.61 6.12 3.76 14.63

Fort Myers, FL Madison, WI 18.12 8.10 28.98 5.52 3.45 12.35

Fort Myers, FL New Orleans, LA 11.56 4.41 22.53 8.65 4.44 22.68

Fort Myers, FL San Diego, CA 16.15 6.59 28.29 6.19 3.54 15.17

Fort Myers, FL Norfolk, VA (Metropolitan Area) 12.92 5.44 23.55 7.74 4.25 18.37

Fort Myers, FL Oklahoma City, OK 12.51 4.81 22.94 7.99 4.36 20.77

Fort Myers, FL Portland, OR 17.03 7.59 28.96 5.87 3.45 13.18

Fort Myers, FL Philadelphia, PA 10.22 4.64 19.99 9.78 5.00 21.53

Fort Myers, FL Portland, ME 17.79 6.93 32.25 5.62 3.10 14.44

Fort Myers, FL Raleigh/Durham, NC 16.89 7.77 28.04 5.92 3.57 12.87

Fort Myers, FL Richmond, VA 18.14 7.52 32.37 5.51 3.09 13.29

Fort Myers, FL Rochester, NY 10.07 4.49 20.76 9.93 4.82 22.28

Fort Myers, FL Salt Lake City, UT 15.17 6.97 25.38 6.59 3.94 14.34

Fort Myers, FL Tulsa, OK 13.20 4.79 23.14 7.58 4.32 20.88

Fort Myers, FL Syracuse, NY 15.82 6.90 27.18 6.32 3.68 14.49

Flint, MI Phoenix, AZ 16.08 7.02 29.74 6.22 3.36 14.24

Flint, MI Washington, DC (Metropolitan Area) 26.04 12.83 41.99 3.84 2.38 7.79

Flint, MI Orlando, FL 19.21 8.03 34.33 5.21 2.91 12.46

Flint, MI New York City, NY (Metropolitan Area) 27.38 11.88 43.19 3.65 2.32 8.41

Flint, MI Tampa, FL (Metropolitan Area) 14.09 6.09 26.22 7.10 3.81 16.41

Sioux Falls, SD Washington, DC (Metropolitan Area) 11.25 4.73 20.51 8.89 4.88 21.13

Fort Smith, AR Los Angeles, CA (Metropolitan Area) 15.08 6.59 26.34 6.63 3.80 15.17

Fort Wayne, IN Phoenix, AZ 21.57 9.89 34.29 4.64 2.92 10.11

Fort Wayne, IN Washington, DC (Metropolitan Area) 18.52 9.35 30.94 5.40 3.23 10.70

Fort Wayne, IN Houston, TX 16.33 7.85 28.73 6.12 3.48 12.74

Fort Wayne, IN Orlando, FL 19.54 8.51 33.50 5.12 2.99 11.75

Fort Wayne, IN Minneapolis/St. Paul, MN 11.79 5.24 21.58 8.48 4.63 19.08

Fort Wayne, IN New York City, NY (Metropolitan Area) 13.75 6.81 23.61 7.27 4.23 14.68

Fort Wayne, IN Las Vegas, NV 18.07 8.13 31.41 5.53 3.18 12.31

Fort Wayne, IN San Francisco, CA (Metropolitan Area) 13.45 5.68 25.14 7.43 3.98 17.60

Fort Wayne, IN Miami, FL (Metropolitan Area) 30.62 14.08 47.63 3.27 2.10 7.10

Fort Wayne, IN Los Angeles, CA (Metropolitan Area) 13.79 5.26 23.53 7.25 4.25 19.02

Fort Wayne, IN Tampa, FL (Metropolitan Area) 24.38 12.29 39.37 4.10 2.54 8.14

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Fort Wayne, IN San Diego, CA 21.16 10.00 36.19 4.73 2.76 10.00

Fort Wayne, IN Philadelphia, PA 10.60 4.18 19.40 9.44 5.15 23.91

Fayetteville, AR Phoenix, AZ 11.36 4.58 20.05 8.80 4.99 21.83

Fayetteville, AR Nashville, TN 17.88 8.73 26.24 5.59 3.81 11.46

Fayetteville, AR Washington, DC (Metropolitan Area) 8.02 3.46 14.25 12.47 7.02 28.89

Fayetteville, AR Orlando, FL 10.60 4.34 20.00 9.43 5.00 23.06

Fayetteville, AR Minneapolis/St. Paul, MN 22.09 10.90 34.28 4.53 2.92 9.17

Fayetteville, AR New York City, NY (Metropolitan Area) 6.81 2.68 14.25 14.69 7.02 37.38

Fayetteville, AR San Francisco, CA (Metropolitan Area) 10.18 3.63 17.39 9.83 5.75 27.58

Fayetteville, AR Miami, FL (Metropolitan Area) 14.48 6.52 24.42 6.90 4.09 15.35

Fayetteville, AR Los Angeles, CA (Metropolitan Area) 11.17 4.49 19.64 8.95 5.09 22.25

Fayetteville, AR Tampa, FL (Metropolitan Area) 14.94 6.78 24.50 6.69 4.08 14.75

Fayetteville, AR San Antonio, TX 16.67 8.06 27.36 6.00 3.66 12.41

Fayetteville, AR Philadelphia, PA 13.52 6.67 22.47 7.40 4.45 14.99

Greenville/Spartanburg, SC Pittsburgh, PA 12.57 5.54 21.33 7.96 4.69 18.05

Greenville/Spartanburg, SC Phoenix, AZ 20.64 9.72 33.81 4.84 2.96 10.29

Greenville/Spartanburg, SC Hartford, CT 18.10 8.95 28.96 5.53 3.45 11.17

Greenville/Spartanburg, SC Seattle, WA 26.05 12.06 41.56 3.84 2.41 8.29

Greenville/Spartanburg, SC Washington, DC (Metropolitan Area) 22.04 10.74 34.46 4.54 2.90 9.31

Greenville/Spartanburg, SC St. Louis, MO 11.03 6.17 19.80 9.06 5.05 16.20

Greenville/Spartanburg, SC Houston, TX 22.54 11.09 39.38 4.44 2.54 9.02

Greenville/Spartanburg, SC Orlando, FL 20.76 10.00 33.58 4.82 2.98 10.00

Greenville/Spartanburg, SC Minneapolis/St. Paul, MN 13.54 6.40 22.34 7.39 4.48 15.63

Greenville/Spartanburg, SC New York City, NY (Metropolitan Area) 11.73 5.07 23.46 8.52 4.26 19.74

Greenville/Spartanburg, SC Las Vegas, NV 26.27 10.93 43.40 3.81 2.30 9.15

Greenville/Spartanburg, SC Indianapolis, IN 17.68 7.89 28.79 5.66 3.47 12.67

Greenville/Spartanburg, SC San Francisco, CA (Metropolitan Area) 20.96 8.84 33.03 4.77 3.03 11.32

Greenville/Spartanburg, SC Miami, FL (Metropolitan Area) 11.16 4.57 20.71 8.96 4.83 21.88

Greenville/Spartanburg, SC Los Angeles, CA (Metropolitan Area) 17.52 7.66 31.66 5.71 3.16 13.05

Greenville/Spartanburg, SC Tampa, FL (Metropolitan Area) 10.73 4.65 20.79 9.32 4.81 21.49

Greenville/Spartanburg, SC Kansas City, MO 16.93 7.56 27.79 5.91 3.60 13.22

Greenville/Spartanburg, SC San Antonio, TX 15.23 6.44 26.72 6.57 3.74 15.52

Greenville/Spartanburg, SC Memphis, TN 20.43 8.79 36.29 4.89 2.76 11.37

Greenville/Spartanburg, SC Milwaukee, WI 22.22 11.29 34.02 4.50 2.94 8.86

Greenville/Spartanburg, SC San Diego, CA 34.70 18.99 47.89 2.88 2.09 5.27

Greenville/Spartanburg, SC Philadelphia, PA 12.99 5.27 23.61 7.70 4.24 18.96

Spokane, WA Tucson, AZ 13.16 5.09 23.50 7.60 4.26 19.66

Spokane, WA Washington, DC (Metropolitan Area) 9.55 3.93 17.34 10.47 5.77 25.45

Spokane, WA St. Louis, MO 10.71 4.40 19.41 9.33 5.15 22.73

Spokane, WA Tampa, FL (Metropolitan Area) 14.73 5.56 25.84 6.79 3.87 17.99

Great Falls, MT Seattle, WA 10.16 3.98 19.18 9.84 5.21 25.11

Great Falls, MT Washington, DC (Metropolitan Area) 13.07 4.78 22.32 7.65 4.48 20.94

Great Falls, MT Los Angeles, CA (Metropolitan Area) 16.80 7.55 28.79 5.95 3.47 13.24

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Grand Forks, ND Washington, DC (Metropolitan Area) 22.63 10.46 36.43 4.42 2.75 9.56

Grand Forks, ND Minneapolis/St. Paul, MN 12.24 4.74 25.05 8.17 3.99 21.10

Grand Junction, CO San Francisco, CA (Metropolitan Area) 13.97 6.58 24.83 7.16 4.03 15.20

Grand Junction, CO Los Angeles, CA (Metropolitan Area) 11.52 5.23 20.91 8.68 4.78 19.14

Gainesville, FL Washington, DC (Metropolitan Area) 16.63 6.97 28.87 6.01 3.46 14.35

Gainesville, FL New York City, NY (Metropolitan Area) 23.52 11.90 35.85 4.25 2.79 8.40

Gulfport/Biloxi, MS Washington, DC (Metropolitan Area) 12.98 5.22 23.90 7.70 4.18 19.15

Gulfport/Biloxi, MS New York City, NY (Metropolitan Area) 15.20 6.88 28.02 6.58 3.57 14.54

Gulfport/Biloxi, MS Las Vegas, NV 13.02 4.70 23.35 7.68 4.28 21.29

Gulfport/Biloxi, MS Los Angeles, CA (Metropolitan Area) 10.50 4.03 19.97 9.52 5.01 24.79

Gulfport/Biloxi, MS San Antonio, TX 8.79 3.70 18.94 11.38 5.28 27.01

Gulfport/Biloxi, MS Philadelphia, PA 10.07 4.26 19.91 9.93 5.02 23.46

Green Bay, WI Phoenix, AZ 17.81 7.36 29.72 5.61 3.37 13.59

Green Bay, WI Washington, DC (Metropolitan Area) 11.23 4.49 19.07 8.91 5.24 22.25

Green Bay, WI Houston, TX 13.59 5.81 23.50 7.36 4.26 17.20

Green Bay, WI Orlando, FL 26.59 13.41 40.07 3.76 2.50 7.46

Green Bay, WI Minneapolis/St. Paul, MN 7.90 3.39 14.87 12.66 6.73 29.47

Green Bay, WI New York City, NY (Metropolitan Area) 9.01 3.55 16.70 11.09 5.99 28.18

Green Bay, WI Las Vegas, NV 26.26 12.24 40.30 3.81 2.48 8.17

Green Bay, WI San Francisco, CA (Metropolitan Area) 12.84 5.97 22.58 7.79 4.43 16.76

Green Bay, WI Miami, FL (Metropolitan Area) 21.20 10.79 32.57 4.72 3.07 9.26

Green Bay, WI Los Angeles, CA (Metropolitan Area) 11.85 4.68 21.11 8.44 4.74 21.38

Green Bay, WI Tampa, FL (Metropolitan Area) 22.54 10.34 37.18 4.44 2.69 9.67

Green Bay, WI San Diego, CA 9.80 4.02 18.12 10.21 5.52 24.86

Green Bay, WI Philadelphia, PA 11.14 4.51 20.20 8.98 4.95 22.15

Killeen, TX Washington, DC (Metropolitan Area) 21.25 9.47 34.29 4.71 2.92 10.56

Killeen, TX New York City, NY (Metropolitan Area) 13.42 5.44 22.92 7.45 4.36 18.38

Killeen, TX Los Angeles, CA (Metropolitan Area) 18.96 8.20 33.71 5.27 2.97 12.19

Grand Rapids, MI Pittsburgh, PA 6.76 2.85 12.38 14.80 8.08 35.10

Grand Rapids, MI Phoenix, AZ 15.81 7.66 28.33 6.32 3.53 13.06

Grand Rapids, MI Hartford, CT 10.79 4.41 20.28 9.26 4.93 22.68

Grand Rapids, MI Seattle, WA 22.67 11.82 33.73 4.41 2.96 8.46

Grand Rapids, MI Nashville, TN 13.19 5.63 22.97 7.58 4.35 17.77

Grand Rapids, MI Washington, DC (Metropolitan Area) 15.98 7.19 25.87 6.26 3.86 13.91

Grand Rapids, MI St. Louis, MO 15.67 6.39 26.76 6.38 3.74 15.64

Grand Rapids, MI Jacksonville, FL 16.67 7.05 28.74 6.00 3.48 14.18

Grand Rapids, MI Houston, TX 13.68 6.10 26.60 7.31 3.76 16.39

Grand Rapids, MI Orlando, FL 22.69 10.12 36.53 4.41 2.74 9.88

Grand Rapids, MI Minneapolis/St. Paul, MN 7.84 3.75 13.46 12.75 7.43 26.66

Grand Rapids, MI New York City, NY (Metropolitan Area) 13.57 5.48 25.44 7.37 3.93 18.24

Grand Rapids, MI Las Vegas, NV 29.82 15.12 45.02 3.35 2.22 6.61

Grand Rapids, MI San Francisco, CA (Metropolitan Area) 12.58 5.47 21.73 7.95 4.60 18.28

Grand Rapids, MI Miami, FL (Metropolitan Area) 18.80 8.88 29.63 5.32 3.38 11.26

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Grand Rapids, MI Los Angeles, CA (Metropolitan Area) 10.83 4.51 18.05 9.24 5.54 22.17

Grand Rapids, MI Tampa, FL (Metropolitan Area) 17.23 8.25 29.31 5.80 3.41 12.12

Grand Rapids, MI Kansas City, MO 11.70 5.80 19.89 8.54 5.03 17.25

Grand Rapids, MI San Antonio, TX 18.04 8.25 30.37 5.54 3.29 12.11

Grand Rapids, MI Memphis, TN 13.14 5.58 24.95 7.61 4.01 17.92

Grand Rapids, MI San Diego, CA 18.13 8.66 31.14 5.52 3.21 11.55

Grand Rapids, MI West Palm Beach/Palm Beach, FL 14.79 6.54 27.00 6.76 3.70 15.30

Grand Rapids, MI Portland, OR 11.98 4.27 22.45 8.35 4.45 23.42

Grand Rapids, MI Philadelphia, PA 12.93 5.61 22.32 7.73 4.48 17.82

Grand Rapids, MI Raleigh/Durham, NC 15.98 7.02 27.46 6.26 3.64 14.25

Grand Rapids, MI Salt Lake City, UT 12.38 5.62 22.14 8.08 4.52 17.79

Greensboro/High Point, NC Pittsburgh, PA 11.62 4.96 21.01 8.61 4.76 20.14

Greensboro/High Point, NC Phoenix, AZ 10.46 4.44 20.26 9.56 4.93 22.55

Greensboro/High Point, NC Hartford, CT 11.76 5.09 19.49 8.50 5.13 19.64

Greensboro/High Point, NC Seattle, WA 14.71 6.78 25.85 6.80 3.87 14.76

Greensboro/High Point, NC Nashville, TN 15.87 7.58 26.13 6.30 3.83 13.19

Greensboro/High Point, NC Washington, DC (Metropolitan Area) 16.52 7.74 26.14 6.05 3.83 12.92

Greensboro/High Point, NC St. Louis, MO 8.82 3.33 14.86 11.33 6.73 30.06

Greensboro/High Point, NC Jacksonville, FL 15.61 7.13 25.95 6.41 3.85 14.03

Greensboro/High Point, NC Houston, TX 21.36 7.10 35.76 4.68 2.80 14.08

Greensboro/High Point, NC Orlando, FL 14.30 5.55 26.41 6.99 3.79 18.03

Greensboro/High Point, NC Minneapolis/St. Paul, MN 15.37 7.37 25.75 6.51 3.88 13.57

Greensboro/High Point, NC New York City, NY (Metropolitan Area) 11.71 5.05 21.48 8.54 4.65 19.80

Greensboro/High Point, NC Las Vegas, NV 13.00 5.52 22.55 7.69 4.43 18.12

Greensboro/High Point, NC Indianapolis, IN 9.32 3.95 16.73 10.73 5.98 25.35

Greensboro/High Point, NC San Francisco, CA (Metropolitan Area) 11.65 4.87 20.21 8.58 4.95 20.52

Greensboro/High Point, NC Miami, FL (Metropolitan Area) 12.33 4.42 24.25 8.11 4.12 22.62

Greensboro/High Point, NC Los Angeles, CA (Metropolitan Area) 11.02 4.96 20.26 9.07 4.94 20.18

Greensboro/High Point, NC Louisville, KY 25.33 14.97 35.90 3.95 2.79 6.68

Greensboro/High Point, NC Tampa, FL (Metropolitan Area) 20.44 9.62 32.84 4.89 3.05 10.39

Greensboro/High Point, NC Kansas City, MO 11.61 4.87 19.95 8.61 5.01 20.52

Greensboro/High Point, NC San Antonio, TX 10.68 3.62 21.05 9.36 4.75 27.65

Greensboro/High Point, NC Memphis, TN 27.60 12.54 44.38 3.62 2.25 7.97

Greensboro/High Point, NC Milwaukee, WI 16.41 7.82 26.14 6.09 3.83 12.79

Greensboro/High Point, NC New Orleans, LA 14.76 5.83 29.69 6.77 3.37 17.15

Greensboro/High Point, NC San Diego, CA 9.68 4.42 18.14 10.33 5.51 22.63

Greensboro/High Point, NC Portland, OR 5.46 2.25 12.23 18.30 8.18 44.45

Greensboro/High Point, NC Philadelphia, PA 8.80 3.95 16.84 11.36 5.94 25.30

Greensboro/High Point, NC Rochester, NY 10.56 4.74 20.60 9.47 4.85 21.09

Greensboro/High Point, NC Salt Lake City, UT 13.14 5.48 24.88 7.61 4.02 18.26

Harrisburg, PA Phoenix, AZ 16.24 7.05 26.83 6.16 3.73 14.19

Harrisburg, PA Seattle, WA 12.06 5.08 21.27 8.29 4.70 19.71

Harrisburg, PA Nashville, TN 12.75 5.49 21.07 7.84 4.75 18.22

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Harrisburg, PA St. Louis, MO 9.13 3.50 17.25 10.95 5.80 28.53

Harrisburg, PA Jacksonville, FL 20.62 9.21 33.16 4.85 3.02 10.85

Harrisburg, PA Houston, TX 14.78 5.81 26.00 6.76 3.85 17.23

Harrisburg, PA Orlando, FL 14.54 6.59 27.49 6.88 3.64 15.17

Harrisburg, PA Minneapolis/St. Paul, MN 14.18 6.67 24.43 7.05 4.09 14.99

Harrisburg, PA Las Vegas, NV 20.76 9.18 32.90 4.82 3.04 10.89

Harrisburg, PA Indianapolis, IN 10.02 4.24 17.99 9.98 5.56 23.58

Harrisburg, PA San Francisco, CA (Metropolitan Area) 11.34 5.03 19.64 8.82 5.09 19.87

Harrisburg, PA Miami, FL (Metropolitan Area) 33.27 19.10 46.55 3.01 2.15 5.24

Harrisburg, PA Los Angeles, CA (Metropolitan Area) 11.66 4.43 20.97 8.58 4.77 22.60

Harrisburg, PA Tampa, FL (Metropolitan Area) 20.42 9.77 31.59 4.90 3.17 10.24

Harrisburg, PA Kansas City, MO 11.79 4.81 19.88 8.48 5.03 20.78

Harrisburg, PA San Antonio, TX 20.57 9.57 34.23 4.86 2.92 10.45

Harrisburg, PA Memphis, TN 21.93 11.34 34.32 4.56 2.91 8.82

Harrisburg, PA Milwaukee, WI 9.96 3.92 17.21 10.04 5.81 25.54

Harrisburg, PA New Orleans, LA 25.51 12.00 39.70 3.92 2.52 8.33

Harrisburg, PA San Diego, CA 19.89 9.69 31.57 5.03 3.17 10.32

Helena, MT Seattle, WA 10.58 3.87 19.55 9.45 5.11 25.82

Helena, MT Los Angeles, CA (Metropolitan Area) 9.07 3.85 17.44 11.02 5.73 25.96

Harlingen/San Benito, TX Phoenix, AZ 10.86 4.45 18.35 9.21 5.45 22.46

Harlingen/San Benito, TX Nashville, TN 14.01 5.25 27.34 7.14 3.66 19.03

Harlingen/San Benito, TX Washington, DC (Metropolitan Area) 11.47 4.45 20.90 8.71 4.79 22.49

Harlingen/San Benito, TX St. Louis, MO 14.73 6.00 24.18 6.79 4.14 16.68

Harlingen/San Benito, TX Houston, TX 26.03 12.46 43.03 3.84 2.32 8.03

Harlingen/San Benito, TX Las Vegas, NV 19.98 7.83 35.55 5.00 2.81 12.77

Harlingen/San Benito, TX San Francisco, CA (Metropolitan Area) 12.01 5.09 24.35 8.33 4.11 19.64

Harlingen/San Benito, TX Los Angeles, CA (Metropolitan Area) 9.06 3.46 17.64 11.04 5.67 28.94

Harlingen/San Benito, TX San Antonio, TX 17.23 7.01 30.46 5.81 3.28 14.26

Las Vegas, NV Pittsburgh, PA 13.95 6.53 23.73 7.17 4.21 15.31

Las Vegas, NV Scranton/Wilkes-Barre, PA 16.94 7.34 28.93 5.90 3.46 13.62

Las Vegas, NV Tucson, AZ 15.11 7.08 27.35 6.62 3.66 14.13

Las Vegas, NV Phoenix, AZ 16.93 7.27 28.24 5.91 3.54 13.76

Las Vegas, NV Shreveport, LA 15.14 6.31 27.14 6.61 3.68 15.85

Las Vegas, NV Seattle, WA 5.56 2.17 9.85 17.97 10.15 46.02

Las Vegas, NV Nashville, TN 5.88 2.41 10.90 17.01 9.18 41.56

Las Vegas, NV Washington, DC (Metropolitan Area) 5.80 2.68 11.40 17.25 8.77 37.28

Las Vegas, NV Wichita, KS 21.87 9.50 39.40 4.57 2.54 10.52

Las Vegas, NV St. Louis, MO 6.27 3.52 12.01 15.95 8.33 28.39

Las Vegas, NV Orlando, FL 6.85 3.14 13.04 14.60 7.67 31.90

Las Vegas, NV Valparaiso, FL 21.23 10.22 34.66 4.71 2.88 9.79

Las Vegas, NV Minneapolis/St. Paul, MN 11.07 5.11 20.35 9.03 4.91 19.55

Las Vegas, NV New York City, NY (Metropolitan Area) 5.23 2.07 9.79 19.13 10.21 48.39

Las Vegas, NV Sioux Falls, SD 18.10 7.02 31.16 5.53 3.21 14.25

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Las Vegas, NV Spokane, WA 8.58 3.72 16.13 11.66 6.20 26.87

Las Vegas, NV San Francisco, CA (Metropolitan Area) 5.34 2.19 9.84 18.74 10.16 45.63

Las Vegas, NV Miami, FL (Metropolitan Area) 6.80 2.90 12.00 14.71 8.33 34.46

Las Vegas, NV Los Angeles, CA (Metropolitan Area) 14.89 6.14 26.29 6.72 3.80 16.28

Las Vegas, NV Little Rock, AR 7.84 3.75 14.55 12.75 6.87 26.70

Las Vegas, NV Lubbock, TX 12.48 5.58 21.79 8.01 4.59 17.93

Las Vegas, NV Lexington, KY 25.52 11.27 40.00 3.92 2.50 8.87

Las Vegas, NV Louisville, KY 8.74 3.48 16.27 11.44 6.14 28.74

Las Vegas, NV Midland/Odessa, TX 2.73 1.59 7.34 36.61 13.64 63.15

Las Vegas, NV Sacramento, CA 5.64 2.07 12.31 17.73 8.13 48.54

Las Vegas, NV Tampa, FL (Metropolitan Area) 5.47 2.38 10.76 18.28 9.29 42.08

Las Vegas, NV San Antonio, TX 6.67 2.74 12.30 14.99 8.13 36.48

Las Vegas, NV Memphis, TN 15.07 6.89 24.90 6.64 4.02 14.52

Las Vegas, NV Mission/McAllen/Edinburg, TX 21.48 9.48 35.58 4.66 2.81 10.55

Las Vegas, NV Medford, OR 11.81 4.85 21.55 8.47 4.64 20.64

Las Vegas, NV Omaha, NE 6.79 2.86 12.76 14.73 7.84 35.01

Las Vegas, NV Milwaukee, WI 13.55 6.07 24.95 7.38 4.01 16.47

Las Vegas, NV Quad Cities, IL (Metropolitan Area) 21.00 9.17 37.43 4.76 2.67 10.91

Las Vegas, NV Madison, WI 20.25 8.79 36.33 4.94 2.75 11.38

Las Vegas, NV Missoula, MT 18.58 8.19 32.01 5.38 3.12 12.21

Las Vegas, NV New Orleans, LA 12.10 5.51 21.80 8.27 4.59 18.15

Las Vegas, NV San Diego, CA 9.87 4.03 19.14 10.13 5.23 24.80

Las Vegas, NV Norfolk, VA (Metropolitan Area) 18.59 8.42 30.63 5.38 3.26 11.87

Las Vegas, NV Pensacola, FL 11.06 4.74 20.94 9.04 4.78 21.08

Las Vegas, NV Oklahoma City, OK 16.37 7.54 27.24 6.11 3.67 13.25

Las Vegas, NV West Palm Beach/Palm Beach, FL 11.56 5.14 23.86 8.65 4.19 19.47

Las Vegas, NV Portland, OR 5.28 2.18 9.22 18.96 10.84 45.84

Las Vegas, NV Philadelphia, PA 9.33 4.55 16.77 10.72 5.96 21.96

Las Vegas, NV Peoria, IL 20.64 9.62 38.35 4.85 2.61 10.39

Las Vegas, NV Pasco/Kennewick/Richland, WA 17.08 7.58 28.81 5.86 3.47 13.18

Las Vegas, NV Portland, ME 17.51 6.85 31.22 5.71 3.20 14.59

Las Vegas, NV Rapid City, SD 15.21 6.52 28.03 6.57 3.57 15.33

Las Vegas, NV Raleigh/Durham, NC 8.82 4.02 16.06 11.34 6.23 24.87

Las Vegas, NV Richmond, VA 22.87 10.87 38.04 4.37 2.63 9.20

Las Vegas, NV Reno, NV 19.86 9.88 31.93 5.04 3.13 10.12

Las Vegas, NV Roanoke, VA 18.92 7.79 33.18 5.29 3.01 12.84

Las Vegas, NV Rochester, NY 19.07 8.01 31.84 5.24 3.14 12.48

Las Vegas, NV Salt Lake City, UT 5.28 1.84 11.14 18.95 8.98 54.28

Las Vegas, NV Tulsa, OK 9.19 4.04 16.78 10.88 5.96 24.76

Las Vegas, NV South Bend, IN 19.78 8.05 34.17 5.05 2.93 12.42

Las Vegas, NV Springfield, MO 16.24 6.17 30.04 6.16 3.33 16.20

Las Vegas, NV Sarasota/Bradenton, FL 22.00 10.09 36.14 4.55 2.77 9.92

Las Vegas, NV Syracuse, NY 29.40 14.06 43.83 3.40 2.28 7.11

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Idaho Falls, ID Seattle, WA 21.66 10.27 35.96 4.62 2.78 9.73

Idaho Falls, ID Washington, DC (Metropolitan Area) 14.85 7.49 26.86 6.73 3.72 13.36

Idaho Falls, ID San Francisco, CA (Metropolitan Area) 10.21 3.75 19.86 9.80 5.03 26.64

Idaho Falls, ID Los Angeles, CA (Metropolitan Area) 17.20 7.91 30.34 5.81 3.30 12.64

Indianapolis, IN Pittsburgh, PA 19.61 7.81 34.19 5.10 2.92 12.80

Indianapolis, IN Tucson, AZ 12.09 5.20 21.47 8.27 4.66 19.23

Indianapolis, IN Phoenix, AZ 11.69 5.54 18.75 8.56 5.33 18.05

Indianapolis, IN Seattle, WA 7.15 2.70 13.37 13.98 7.48 36.98

Indianapolis, IN Washington, DC (Metropolitan Area) 14.37 6.99 22.41 6.96 4.46 14.30

Indianapolis, IN Wichita, KS 9.78 4.08 18.70 10.22 5.35 24.51

Indianapolis, IN St. Louis, MO 11.42 5.31 20.90 8.75 4.79 18.85

Indianapolis, IN Jacksonville, FL 12.96 6.18 22.06 7.71 4.53 16.18

Indianapolis, IN Orlando, FL 6.95 2.90 12.25 14.38 8.17 34.43

Indianapolis, IN Minneapolis/St. Paul, MN 6.81 3.12 11.98 14.69 8.35 32.09

Indianapolis, IN New York City, NY (Metropolitan Area) 11.88 5.25 20.09 8.42 4.98 19.03

Indianapolis, IN Las Vegas, NV 13.32 6.53 21.43 7.51 4.67 15.32

Indianapolis, IN Jackson/Vicksburg, MS 15.82 6.96 26.90 6.32 3.72 14.36

Indianapolis, IN San Francisco, CA (Metropolitan Area) 7.92 3.37 13.99 12.62 7.15 29.68

Indianapolis, IN Miami, FL (Metropolitan Area) 9.40 4.28 17.60 10.64 5.68 23.35

Indianapolis, IN Los Angeles, CA (Metropolitan Area) 7.53 3.13 14.45 13.29 6.92 31.99

Indianapolis, IN Little Rock, AR 12.61 5.39 21.68 7.93 4.61 18.56

Indianapolis, IN Sacramento, CA 6.30 2.63 12.28 15.87 8.14 37.96

Indianapolis, IN Tampa, FL (Metropolitan Area) 5.90 2.37 10.94 16.94 9.14 42.21

Indianapolis, IN Kansas City, MO 11.52 5.05 22.34 8.68 4.48 19.80

Indianapolis, IN San Antonio, TX 17.24 8.73 27.56 5.80 3.63 11.46

Indianapolis, IN Memphis, TN 10.57 4.15 20.08 9.46 4.98 24.11

Indianapolis, IN Mission/McAllen/Edinburg, TX 15.09 6.21 26.01 6.63 3.84 16.10

Indianapolis, IN Omaha, NE 12.01 5.01 21.97 8.33 4.55 19.97

Indianapolis, IN Milwaukee, WI 24.82 12.80 39.93 4.03 2.50 7.81

Indianapolis, IN Madison, WI 12.38 5.93 23.01 8.08 4.35 16.86

Indianapolis, IN New Orleans, LA 9.90 4.31 21.02 10.10 4.76 23.21

Indianapolis, IN San Diego, CA 8.57 3.71 15.86 11.67 6.31 26.98

Indianapolis, IN Norfolk, VA (Metropolitan Area) 11.84 5.64 19.76 8.44 5.06 17.74

Indianapolis, IN Pensacola, FL 20.19 8.91 34.86 4.95 2.87 11.23

Indianapolis, IN Oklahoma City, OK 6.83 2.42 13.11 14.64 7.63 41.38

Indianapolis, IN West Palm Beach/Palm Beach, FL 13.64 6.48 24.87 7.33 4.02 15.44

Indianapolis, IN Portland, OR 3.36 1.22 9.23 29.93 10.83 82.04

Indianapolis, IN Philadelphia, PA 8.06 3.46 14.16 12.40 7.06 28.93

Indianapolis, IN Portland, ME 10.89 5.14 17.97 9.18 5.56 19.44

Indianapolis, IN Raleigh/Durham, NC 11.23 3.87 18.55 8.90 5.39 25.86

Indianapolis, IN Richmond, VA 14.96 7.25 24.97 6.68 4.01 13.79

Indianapolis, IN Reno, NV 15.29 6.66 30.04 6.54 3.33 15.01

Indianapolis, IN Rochester, NY 10.26 4.67 17.43 9.75 5.74 21.40

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Indianapolis, IN Salt Lake City, UT 8.04 3.26 14.28 12.43 7.00 30.69

Indianapolis, IN Tulsa, OK 8.62 4.02 18.79 11.60 5.32 24.88

Indianapolis, IN Savannah, GA 12.10 5.07 21.02 8.27 4.76 19.71

Indianapolis, IN Sarasota/Bradenton, FL 17.09 7.90 31.44 5.85 3.18 12.65

Indianapolis, IN Syracuse, NY 15.36 6.94 25.52 6.51 3.92 14.41

Jackson, WY Washington, DC (Metropolitan Area) 9.72 4.50 18.90 10.29 5.29 22.20

Jackson, WY New York City, NY (Metropolitan Area) 8.78 3.79 15.96 11.39 6.27 26.39

Jackson, WY San Francisco, CA (Metropolitan Area) 10.19 4.18 20.60 9.81 4.85 23.90

Jackson, WY Los Angeles, CA (Metropolitan Area) 7.88 3.43 14.74 12.69 6.78 29.12

Jackson/Vicksburg, MS Phoenix, AZ 10.81 4.68 21.64 9.25 4.62 21.35

Jackson/Vicksburg, MS Seattle, WA 9.33 3.51 17.89 10.72 5.59 28.52

Jackson/Vicksburg, MS Washington, DC (Metropolitan Area) 9.34 4.03 16.41 10.70 6.09 24.81

Jackson/Vicksburg, MS St. Louis, MO 14.02 5.50 24.68 7.13 4.05 18.17

Jackson/Vicksburg, MS Jacksonville, FL 12.33 5.71 21.95 8.11 4.56 17.50

Jackson/Vicksburg, MS Orlando, FL 24.01 10.68 40.25 4.17 2.48 9.36

Jackson/Vicksburg, MS Minneapolis/St. Paul, MN 19.04 9.87 29.41 5.25 3.40 10.14

Jackson/Vicksburg, MS New York City, NY (Metropolitan Area) 14.22 6.65 25.11 7.03 3.98 15.03

Jackson/Vicksburg, MS Las Vegas, NV 15.15 6.23 28.72 6.60 3.48 16.06

Jackson/Vicksburg, MS San Francisco, CA (Metropolitan Area) 10.18 3.77 18.58 9.82 5.38 26.54

Jackson/Vicksburg, MS Miami, FL (Metropolitan Area) 17.72 8.55 30.32 5.64 3.30 11.70

Jackson/Vicksburg, MS Los Angeles, CA (Metropolitan Area) 8.78 3.74 18.91 11.39 5.29 26.74

Jackson/Vicksburg, MS Tampa, FL (Metropolitan Area) 25.35 14.26 38.21 3.94 2.62 7.01

Jackson/Vicksburg, MS Kansas City, MO 14.41 5.47 27.88 6.94 3.59 18.27

Jackson/Vicksburg, MS San Antonio, TX 15.20 6.59 29.33 6.58 3.41 15.17

Jackson/Vicksburg, MS San Diego, CA 8.08 2.98 14.99 12.38 6.67 33.55

Jackson/Vicksburg, MS Norfolk, VA (Metropolitan Area) 19.06 9.43 31.22 5.25 3.20 10.60

Jackson/Vicksburg, MS Philadelphia, PA 17.90 8.69 29.12 5.59 3.43 11.51

Jackson/Vicksburg, MS Raleigh/Durham, NC 11.27 4.20 21.73 8.87 4.60 23.80

San Francisco, CA (Metropolitan Area) Scranton/Wilkes-Barre, PA 14.02 6.18 24.40 7.13 4.10 16.18

San Francisco, CA (Metropolitan Area) Tucson, AZ 7.47 2.94 13.66 13.38 7.32 34.03

San Francisco, CA (Metropolitan Area) Shreveport, LA 21.52 11.25 34.18 4.65 2.93 8.89

San Francisco, CA (Metropolitan Area) Seattle, WA 4.16 1.76 7.92 24.04 12.62 56.93

San Francisco, CA (Metropolitan Area) Washington, DC (Metropolitan Area) 4.18 1.86 7.63 23.92 13.11 53.88

San Francisco, CA (Metropolitan Area) Wichita, KS 8.70 3.99 15.66 11.50 6.39 25.06

San Francisco, CA (Metropolitan Area) St. Louis, MO 2.72 1.23 3.61 39.57 27.71 84.81

San Francisco, CA (Metropolitan Area) Sioux Falls, SD 18.55 7.40 31.98 5.39 3.13 13.51

San Francisco, CA (Metropolitan Area) Spokane, WA 4.57 1.88 9.37 21.90 10.68 53.24

San Francisco, CA (Metropolitan Area) Wilmington, NC 13.36 6.47 22.79 7.49 4.39 15.46

San Francisco, CA (Metropolitan Area) Tampa, FL (Metropolitan Area) 4.60 1.92 8.13 21.75 12.30 52.21

San Francisco, CA (Metropolitan Area) West Palm Beach/Palm Beach, FL 9.23 3.65 16.85 10.84 5.94 27.38

San Francisco, CA (Metropolitan Area) Tulsa, OK 8.28 3.59 15.75 12.07 6.35 27.88

San Francisco, CA (Metropolitan Area) Savannah, GA 12.67 5.02 21.13 7.89 4.73 19.91

San Francisco, CA (Metropolitan Area) South Bend, IN 15.47 6.33 27.34 6.47 3.66 15.80

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

San Francisco, CA (Metropolitan Area) Springfield, MO 14.81 6.55 27.27 6.75 3.67 15.26

San Francisco, CA (Metropolitan Area) Sarasota/Bradenton, FL 12.92 5.27 23.39 7.74 4.27 18.97

San Francisco, CA (Metropolitan Area) Syracuse, NY 12.62 6.19 21.23 7.92 4.71 16.16

San Francisco, CA (Metropolitan Area) Tallahassee, FL 15.86 7.54 26.99 6.31 3.70 13.26

San Francisco, CA (Metropolitan Area) Yakima, WA 15.15 5.92 27.09 6.60 3.69 16.88

Miami, FL (Metropolitan Area) Pittsburgh, PA 8.29 3.71 15.50 12.06 6.45 26.95

Miami, FL (Metropolitan Area) Scranton/Wilkes-Barre, PA 20.86 10.12 35.06 4.79 2.85 9.88

Miami, FL (Metropolitan Area) Tucson, AZ 13.50 5.77 22.31 7.41 4.48 17.34

Miami, FL (Metropolitan Area) Phoenix, AZ 9.42 4.18 16.55 10.61 6.04 23.91

Miami, FL (Metropolitan Area) Shreveport, LA 20.41 7.92 33.35 4.90 3.00 12.62

Miami, FL (Metropolitan Area) Seattle, WA 5.10 2.17 9.98 19.61 10.02 46.06

Miami, FL (Metropolitan Area) Mobile, AL 13.47 5.75 27.36 7.42 3.65 17.40

Miami, FL (Metropolitan Area) Nashville, TN 10.56 5.26 18.08 9.47 5.53 19.02

Miami, FL (Metropolitan Area) Washington, DC (Metropolitan Area) 7.96 3.22 14.23 12.57 7.03 31.07

Miami, FL (Metropolitan Area) Wichita, KS 25.38 14.44 37.49 3.94 2.67 6.92

Miami, FL (Metropolitan Area) St. Louis, MO 10.83 5.15 17.69 9.24 5.65 19.42

Miami, FL (Metropolitan Area) Myrtle Beach, SC 14.45 6.27 26.30 6.92 3.80 15.94

Miami, FL (Metropolitan Area) Orlando, FL 12.16 5.62 21.79 8.23 4.59 17.80

Miami, FL (Metropolitan Area) Minneapolis/St. Paul, MN 7.40 2.86 14.12 13.51 7.08 34.96

Miami, FL (Metropolitan Area) New York City, NY (Metropolitan Area) 6.81 2.87 12.94 14.68 7.73 34.84

Miami, FL (Metropolitan Area) Spokane, WA 13.68 5.22 23.53 7.31 4.25 19.16

Miami, FL (Metropolitan Area) Wilmington, NC 10.41 4.15 19.73 9.61 5.07 24.12

Miami, FL (Metropolitan Area) San Francisco, CA (Metropolitan Area) 7.45 2.87 13.94 13.43 7.17 34.81

Miami, FL (Metropolitan Area) Sacramento, CA 15.58 7.56 25.27 6.42 3.96 13.23

Miami, FL (Metropolitan Area) Tampa, FL (Metropolitan Area) 16.03 7.06 27.74 6.24 3.61 14.17

Miami, FL (Metropolitan Area) San Antonio, TX 8.21 3.49 14.26 12.17 7.01 28.68

Miami, FL (Metropolitan Area) Mission/McAllen/Edinburg, TX 11.75 5.04 21.52 8.51 4.65 19.84

Miami, FL (Metropolitan Area) Omaha, NE 10.95 4.42 19.37 9.13 5.16 22.63

Miami, FL (Metropolitan Area) Milwaukee, WI 23.17 11.02 36.35 4.32 2.75 9.08

Miami, FL (Metropolitan Area) Quad Cities, IL (Metropolitan Area) 18.92 7.78 33.61 5.29 2.98 12.85

Miami, FL (Metropolitan Area) New Orleans, LA 9.94 3.86 19.56 10.06 5.11 25.93

Miami, FL (Metropolitan Area) San Diego, CA 11.40 5.46 20.03 8.77 4.99 18.31

Miami, FL (Metropolitan Area) Norfolk, VA (Metropolitan Area) 12.95 5.13 24.18 7.72 4.14 19.48

Miami, FL (Metropolitan Area) Pensacola, FL 29.98 14.35 46.09 3.34 2.17 6.97

Miami, FL (Metropolitan Area) Oklahoma City, OK 10.07 4.12 18.67 9.93 5.36 24.29

Miami, FL (Metropolitan Area) Portland, OR 6.81 2.96 12.35 14.68 8.10 33.79

Miami, FL (Metropolitan Area) Philadelphia, PA 15.68 7.71 24.07 6.38 4.15 12.97

Miami, FL (Metropolitan Area) Peoria, IL 13.23 5.77 25.41 7.56 3.94 17.34

Miami, FL (Metropolitan Area) Palm Springs, CA 13.10 5.57 23.36 7.64 4.28 17.96

Miami, FL (Metropolitan Area) Portland, ME 14.26 5.99 26.65 7.01 3.75 16.71

Miami, FL (Metropolitan Area) Raleigh/Durham, NC 13.29 5.98 22.43 7.52 4.46 16.73

Miami, FL (Metropolitan Area) Richmond, VA 12.87 4.97 22.65 7.77 4.41 20.14

Miami, FL (Metropolitan Area) Reno, NV 18.11 7.42 31.89 5.52 3.14 13.48

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Miami, FL (Metropolitan Area) Roanoke, VA 24.61 11.91 36.06 4.06 2.77 8.40

Miami, FL (Metropolitan Area) Rochester, NY 13.85 5.96 23.27 7.22 4.30 16.79

Miami, FL (Metropolitan Area) Salt Lake City, UT 10.41 4.71 17.12 9.60 5.84 21.22

Miami, FL (Metropolitan Area) Tulsa, OK 8.58 3.33 15.88 11.65 6.30 30.03

Miami, FL (Metropolitan Area) Savannah, GA 9.57 4.03 18.19 10.45 5.50 24.80

Miami, FL (Metropolitan Area) South Bend, IN 18.73 9.00 30.19 5.34 3.31 11.11

Miami, FL (Metropolitan Area) Springfield, MO 15.14 6.24 28.96 6.61 3.45 16.04

Miami, FL (Metropolitan Area) Syracuse, NY 13.49 5.62 24.51 7.41 4.08 17.80

Miami, FL (Metropolitan Area) Traverse City, MI 13.34 6.09 23.60 7.50 4.24 16.42

Rochester, MN Washington, DC (Metropolitan Area) 15.48 7.50 24.91 6.46 4.01 13.33

Los Angeles, CA (Metropolitan Area) Pittsburgh, PA 7.86 3.62 13.66 12.71 7.32 27.60

Los Angeles, CA (Metropolitan Area) Wausau/Mosinee/Stevens Point, WI 26.80 14.77 38.26 3.73 2.61 6.77

Los Angeles, CA (Metropolitan Area) Scranton/Wilkes-Barre, PA 8.84 4.07 16.61 11.32 6.02 24.55

Los Angeles, CA (Metropolitan Area) Tucson, AZ 9.69 4.08 18.16 10.32 5.51 24.54

Los Angeles, CA (Metropolitan Area) Phoenix, AZ 10.58 4.44 20.02 9.45 4.99 22.52

Los Angeles, CA (Metropolitan Area) Shreveport, LA 19.02 8.10 32.43 5.26 3.08 12.34

Los Angeles, CA (Metropolitan Area) Seattle, WA 3.78 1.45 7.63 26.44 13.10 68.98

Los Angeles, CA (Metropolitan Area) Mobile, AL 17.13 8.05 29.80 5.84 3.36 12.42

Los Angeles, CA (Metropolitan Area) Nashville, TN 5.52 2.45 9.74 18.12 10.27 40.83

Los Angeles, CA (Metropolitan Area) Washington, DC (Metropolitan Area) 4.90 2.43 8.66 20.40 11.54 41.14

Los Angeles, CA (Metropolitan Area) Wichita, KS 10.52 4.87 17.52 9.50 5.71 20.54

Los Angeles, CA (Metropolitan Area) St. Louis, MO 4.10 1.67 8.27 24.41 12.09 59.95

Los Angeles, CA (Metropolitan Area) Myrtle Beach, SC 15.51 6.90 27.01 6.45 3.70 14.50

Los Angeles, CA (Metropolitan Area) Orlando, FL 9.08 3.93 16.86 11.02 5.93 25.43

Los Angeles, CA (Metropolitan Area) Wenatchee, WA 15.60 6.33 27.20 6.41 3.68 15.81

Los Angeles, CA (Metropolitan Area) Valparaiso, FL 22.58 10.96 38.59 4.43 2.59 9.12

Los Angeles, CA (Metropolitan Area) Minneapolis/St. Paul, MN 4.28 1.70 7.90 23.35 12.65 58.78

Los Angeles, CA (Metropolitan Area) New York City, NY (Metropolitan Area) 5.56 2.44 10.04 17.97 9.96 41.00

Los Angeles, CA (Metropolitan Area) Sioux Falls, SD 13.28 5.89 24.91 7.53 4.01 16.97

Los Angeles, CA (Metropolitan Area) Spokane, WA 7.12 2.68 13.92 14.04 7.19 37.38

Los Angeles, CA (Metropolitan Area) Wilmington, NC 10.93 4.82 20.08 9.15 4.98 20.76

Los Angeles, CA (Metropolitan Area) San Francisco, CA (Metropolitan Area) 7.93 3.99 15.61 12.61 6.40 25.06

Los Angeles, CA (Metropolitan Area) Miami, FL (Metropolitan Area) 10.81 4.81 19.02 9.25 5.26 20.78

Los Angeles, CA (Metropolitan Area) Lubbock, TX 8.85 3.24 16.22 11.30 6.17 30.90

Los Angeles, CA (Metropolitan Area) Louisville, KY 6.89 2.75 14.10 14.53 7.09 36.39

Los Angeles, CA (Metropolitan Area) Midland/Odessa, TX 8.51 3.73 17.54 11.76 5.70 26.84

Los Angeles, CA (Metropolitan Area) Saginaw/Bay City/Midland, MI 12.41 4.48 23.70 8.06 4.22 22.31

Los Angeles, CA (Metropolitan Area) Sacramento, CA 11.21 5.01 21.56 8.92 4.64 19.96

Los Angeles, CA (Metropolitan Area) Tampa, FL (Metropolitan Area) 5.53 2.35 10.28 18.09 9.73 42.63

Los Angeles, CA (Metropolitan Area) San Antonio, TX 7.41 3.28 13.57 13.50 7.37 30.46

Los Angeles, CA (Metropolitan Area) Memphis, TN 12.93 5.77 21.03 7.73 4.76 17.34

Los Angeles, CA (Metropolitan Area) Mission/McAllen/Edinburg, TX 11.39 4.74 21.33 8.78 4.69 21.11

Los Angeles, CA (Metropolitan Area) Medford, OR 9.94 4.00 16.72 10.06 5.98 24.99

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Los Angeles, CA (Metropolitan Area) Montgomery, AL 12.40 4.74 23.74 8.07 4.21 21.10

Los Angeles, CA (Metropolitan Area) Omaha, NE 5.02 1.97 9.17 19.90 10.91 50.75

Los Angeles, CA (Metropolitan Area) Milwaukee, WI 15.08 6.44 26.70 6.63 3.75 15.53

Los Angeles, CA (Metropolitan Area) Melbourne, FL 11.14 5.08 20.07 8.98 4.98 19.68

Los Angeles, CA (Metropolitan Area) Quad Cities, IL (Metropolitan Area) 11.19 5.13 20.12 8.94 4.97 19.50

Los Angeles, CA (Metropolitan Area) Monroe, LA 16.72 6.68 32.10 5.98 3.12 14.96

Los Angeles, CA (Metropolitan Area) Madison, WI 10.96 4.66 19.04 9.12 5.25 21.46

Los Angeles, CA (Metropolitan Area) Missoula, MT 12.50 5.51 20.77 8.00 4.81 18.14

Los Angeles, CA (Metropolitan Area) New Orleans, LA 16.47 6.80 27.25 6.07 3.67 14.70

Los Angeles, CA (Metropolitan Area) San Diego, CA 15.45 6.57 26.93 6.47 3.71 15.23

Los Angeles, CA (Metropolitan Area) Norfolk, VA (Metropolitan Area) 12.82 5.78 20.70 7.80 4.83 17.30

Los Angeles, CA (Metropolitan Area) Pensacola, FL 17.07 8.73 28.78 5.86 3.47 11.46

Los Angeles, CA (Metropolitan Area) Redding, CA 27.24 13.05 43.21 3.67 2.31 7.66

Los Angeles, CA (Metropolitan Area) Oklahoma City, OK 8.04 3.26 15.65 12.44 6.39 30.68

Los Angeles, CA (Metropolitan Area) West Palm Beach/Palm Beach, FL 14.51 6.08 24.88 6.89 4.02 16.46

Los Angeles, CA (Metropolitan Area) Portland, OR 6.48 3.08 11.46 15.44 8.73 32.50

Los Angeles, CA (Metropolitan Area) Philadelphia, PA 11.46 5.33 18.76 8.73 5.33 18.75

Los Angeles, CA (Metropolitan Area) Peoria, IL 15.60 6.24 26.72 6.41 3.74 16.03

Los Angeles, CA (Metropolitan Area) Pasco/Kennewick/Richland, WA 29.69 17.71 41.61 3.37 2.40 5.65

Los Angeles, CA (Metropolitan Area) Portland, ME 9.52 4.12 18.13 10.50 5.51 24.28

Los Angeles, CA (Metropolitan Area) Rapid City, SD 17.43 9.01 29.02 5.74 3.45 11.10

Los Angeles, CA (Metropolitan Area) Raleigh/Durham, NC 5.14 1.94 9.33 19.47 10.72 51.61

Los Angeles, CA (Metropolitan Area) Richmond, VA 13.18 5.88 24.44 7.59 4.09 17.01

Los Angeles, CA (Metropolitan Area) Reno, NV 12.79 5.53 23.22 7.82 4.31 18.09

Los Angeles, CA (Metropolitan Area) Roanoke, VA 16.96 7.87 30.80 5.89 3.25 12.71

Los Angeles, CA (Metropolitan Area) Rochester, NY 12.48 6.22 20.56 8.01 4.86 16.08

Los Angeles, CA (Metropolitan Area) Salt Lake City, UT 5.36 2.22 10.16 18.67 9.85 44.95

Los Angeles, CA (Metropolitan Area) Tulsa, OK 10.00 4.23 19.45 10.00 5.14 23.66

Los Angeles, CA (Metropolitan Area) Savannah, GA 20.56 9.50 32.34 4.86 3.09 10.53

Los Angeles, CA (Metropolitan Area) South Bend, IN 19.09 8.72 30.92 5.24 3.23 11.47

Los Angeles, CA (Metropolitan Area) Philipsburg/State College, PA 20.49 8.55 36.20 4.88 2.76 11.69

Los Angeles, CA (Metropolitan Area) Springfield, MO 16.93 7.65 27.75 5.91 3.60 13.07

Los Angeles, CA (Metropolitan Area) Salinas/Monterey, CA 13.21 5.43 23.50 7.57 4.26 18.43

Los Angeles, CA (Metropolitan Area) Sarasota/Bradenton, FL 14.93 6.66 27.61 6.70 3.62 15.02

Los Angeles, CA (Metropolitan Area) Sun Valley/Hailey/Ketchum, ID 15.65 7.00 28.99 6.39 3.45 14.28

Los Angeles, CA (Metropolitan Area) Syracuse, NY 11.35 4.97 19.31 8.81 5.18 20.11

Los Angeles, CA (Metropolitan Area) Tallahassee, FL 16.26 6.34 27.82 6.15 3.59 15.76

Los Angeles, CA (Metropolitan Area) Traverse City, MI 8.16 3.21 15.94 12.26 6.27 31.19

Los Angeles, CA (Metropolitan Area) Yakima, WA 13.94 5.45 25.87 7.17 3.87 18.34

Little Rock, AR Pittsburgh, PA 10.53 5.22 18.92 9.49 5.29 19.18

Little Rock, AR Phoenix, AZ 7.46 3.23 14.55 13.41 6.87 30.91

Little Rock, AR Seattle, WA 7.37 3.07 13.59 13.57 7.36 32.52

Little Rock, AR Washington, DC (Metropolitan Area) 5.99 2.36 11.61 16.70 8.61 42.30

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Little Rock, AR Orlando, FL 7.31 2.96 15.51 13.68 6.45 33.73

Little Rock, AR Minneapolis/St. Paul, MN 16.33 8.05 29.25 6.12 3.42 12.43

Little Rock, AR New York City, NY (Metropolitan Area) 7.23 3.23 13.12 13.83 7.62 30.99

Little Rock, AR San Francisco, CA (Metropolitan Area) 9.25 3.64 16.80 10.82 5.95 27.45

Little Rock, AR Miami, FL (Metropolitan Area) 22.19 10.77 36.18 4.51 2.76 9.28

Little Rock, AR Los Angeles, CA (Metropolitan Area) 7.42 2.87 14.05 13.48 7.12 34.88

Little Rock, AR Louisville, KY 20.30 9.32 33.01 4.93 3.03 10.73

Little Rock, AR Sacramento, CA 9.60 4.14 17.00 10.42 5.88 24.17

Little Rock, AR Tampa, FL (Metropolitan Area) 10.39 4.80 18.92 9.63 5.28 20.84

Little Rock, AR San Antonio, TX 12.95 5.17 23.66 7.72 4.23 19.33

Little Rock, AR Omaha, NE 10.10 3.82 20.02 9.90 4.99 26.18

Little Rock, AR Milwaukee, WI 19.68 9.74 29.55 5.08 3.38 10.26

Little Rock, AR New Orleans, LA 27.16 11.41 46.58 3.68 2.15 8.76

Little Rock, AR San Diego, CA 8.78 3.53 15.61 11.38 6.41 28.36

Little Rock, AR Norfolk, VA (Metropolitan Area) 12.25 5.09 21.46 8.16 4.66 19.64

Little Rock, AR Portland, OR 9.89 4.35 18.03 10.11 5.55 22.97

Little Rock, AR Philadelphia, PA 15.55 7.26 24.88 6.43 4.02 13.78

Little Rock, AR Raleigh/Durham, NC 10.67 4.55 19.49 9.38 5.13 21.99

Little Rock, AR Salt Lake City, UT 9.87 4.28 18.46 10.14 5.42 23.38

Lansing, MI Washington, DC (Metropolitan Area) 20.06 10.32 32.03 4.98 3.12 9.69

Lansing, MI Minneapolis/St. Paul, MN 22.00 9.05 37.46 4.55 2.67 11.05

Lansing, MI New York City, NY (Metropolitan Area) 12.67 5.32 21.61 7.89 4.63 18.78

Lansing, MI Los Angeles, CA (Metropolitan Area) 16.33 7.19 30.83 6.12 3.24 13.91

Lawton/Fort Sill, OK Washington, DC (Metropolitan Area) 11.39 5.04 18.07 8.78 5.54 19.85

Lubbock, TX Phoenix, AZ 18.27 8.43 31.07 5.47 3.22 11.87

Lubbock, TX Seattle, WA 12.91 4.88 23.00 7.74 4.35 20.51

Lubbock, TX Nashville, TN 10.14 3.11 19.94 9.86 5.01 32.11

Lubbock, TX Washington, DC (Metropolitan Area) 12.52 5.79 22.65 7.99 4.41 17.27

Lubbock, TX Orlando, FL 16.05 6.56 28.52 6.23 3.51 15.25

Lubbock, TX New York City, NY (Metropolitan Area) 10.47 4.53 18.26 9.55 5.48 22.06

Lubbock, TX San Francisco, CA (Metropolitan Area) 11.83 5.10 22.23 8.46 4.50 19.62

Lubbock, TX San Antonio, TX 14.18 6.67 28.78 7.05 3.48 14.99

Lubbock, TX New Orleans, LA 17.13 6.92 33.97 5.84 2.94 14.45

Lubbock, TX San Diego, CA 15.08 5.97 28.14 6.63 3.55 16.75

Lexington, KY Phoenix, AZ 22.58 10.66 34.65 4.43 2.89 9.38

Lexington, KY Washington, DC (Metropolitan Area) 13.39 5.95 22.41 7.47 4.46 16.81

Lexington, KY Orlando, FL 42.87 23.30 59.99 2.33 1.67 4.29

Lexington, KY Minneapolis/St. Paul, MN 17.48 8.46 32.59 5.72 3.07 11.82

Lexington, KY New York City, NY (Metropolitan Area) 17.83 8.25 29.68 5.61 3.37 12.13

Lexington, KY San Francisco, CA (Metropolitan Area) 26.11 13.99 38.15 3.83 2.62 7.15

Lexington, KY Miami, FL (Metropolitan Area) 25.36 11.44 42.29 3.94 2.36 8.74

Lexington, KY Los Angeles, CA (Metropolitan Area) 24.52 12.38 35.47 4.08 2.82 8.08

Lexington, KY Tampa, FL (Metropolitan Area) 12.14 4.91 23.49 8.23 4.26 20.38

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Lexington, KY San Antonio, TX 19.88 7.61 35.21 5.03 2.84 13.14

Lexington, KY New Orleans, LA 18.86 7.82 33.89 5.30 2.95 12.78

Lexington, KY San Diego, CA 11.44 5.09 21.29 8.74 4.70 19.65

Lexington, KY Philadelphia, PA 25.27 13.15 37.11 3.96 2.70 7.60

Lexington, KY Raleigh/Durham, NC 14.80 6.62 25.67 6.75 3.89 15.10

Lafayette, LA Washington, DC (Metropolitan Area) 15.17 6.74 25.35 6.59 3.94 14.84

Lafayette, LA New York City, NY (Metropolitan Area) 9.61 3.55 17.41 10.41 5.74 28.19

Lafayette, LA Las Vegas, NV 14.30 5.42 26.42 6.99 3.78 18.45

Lafayette, LA San Francisco, CA (Metropolitan Area) 10.88 4.34 22.82 9.19 4.38 23.03

Lafayette, LA Los Angeles, CA (Metropolitan Area) 12.29 5.03 23.60 8.14 4.24 19.89

Lincoln, NE Washington, DC (Metropolitan Area) 18.11 8.25 29.64 5.52 3.37 12.12

Lincoln, NE New York City, NY (Metropolitan Area) 17.72 7.61 30.41 5.64 3.29 13.14

Lincoln, NE San Francisco, CA (Metropolitan Area) 9.19 3.53 15.19 10.89 6.58 28.35

Lincoln, NE Los Angeles, CA (Metropolitan Area) 15.09 6.51 26.52 6.63 3.77 15.36

Louisville, KY Pittsburgh, PA 22.90 9.18 41.19 4.37 2.43 10.90

Louisville, KY Phoenix, AZ 9.74 3.97 18.16 10.27 5.51 25.19

Louisville, KY Seattle, WA 8.55 3.74 16.18 11.69 6.18 26.71

Louisville, KY Washington, DC (Metropolitan Area) 12.11 5.82 20.08 8.26 4.98 17.20

Louisville, KY Orlando, FL 24.22 11.98 36.88 4.13 2.71 8.34

Louisville, KY Minneapolis/St. Paul, MN 9.71 4.06 16.55 10.30 6.04 24.62

Louisville, KY New York City, NY (Metropolitan Area) 15.08 6.31 26.28 6.63 3.81 15.86

Louisville, KY San Francisco, CA (Metropolitan Area) 9.12 4.00 17.79 10.97 5.62 24.98

Louisville, KY Miami, FL (Metropolitan Area) 8.97 3.57 18.58 11.15 5.38 28.00

Louisville, KY Sacramento, CA 11.58 4.47 21.40 8.64 4.67 22.39

Louisville, KY Tampa, FL (Metropolitan Area) 9.15 3.80 18.07 10.93 5.53 26.34

Louisville, KY San Antonio, TX 15.83 6.41 29.02 6.32 3.45 15.61

Louisville, KY Omaha, NE 16.47 6.94 29.66 6.07 3.37 14.41

Louisville, KY Milwaukee, WI 13.10 5.06 26.75 7.64 3.74 19.78

Louisville, KY New Orleans, LA 10.93 4.56 21.40 9.15 4.67 21.93

Louisville, KY San Diego, CA 10.21 4.18 18.51 9.79 5.40 23.90

Louisville, KY Norfolk, VA (Metropolitan Area) 22.27 11.35 36.28 4.49 2.76 8.81

Louisville, KY Oklahoma City, OK 11.48 4.26 22.06 8.71 4.53 23.49

Louisville, KY West Palm Beach/Palm Beach, FL 24.48 11.09 40.48 4.08 2.47 9.02

Louisville, KY Portland, OR 8.16 3.57 16.32 12.25 6.13 28.02

Louisville, KY Philadelphia, PA 15.25 6.42 28.68 6.56 3.49 15.57

Louisville, KY Raleigh/Durham, NC 24.26 13.99 36.60 4.12 2.73 7.15

Louisville, KY Richmond, VA 13.45 6.57 22.22 7.44 4.50 15.22

Louisville, KY Reno, NV 19.74 8.53 34.99 5.07 2.86 11.72

Louisville, KY Salt Lake City, UT 9.13 3.86 16.43 10.95 6.08 25.92

Louisville, KY Tulsa, OK 15.04 7.19 24.56 6.65 4.07 13.90

Louisville, KY Savannah, GA 15.16 7.13 27.38 6.60 3.65 14.02

La Crosse, WI Washington, DC (Metropolitan Area) 18.41 9.50 29.85 5.43 3.35 10.52

La Crosse, WI New York City, NY (Metropolitan Area) 22.46 10.97 34.77 4.45 2.88 9.12

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

La Crosse, WI Los Angeles, CA (Metropolitan Area) 12.22 5.32 20.78 8.18 4.81 18.81

Cincinnati, OH Dallas/Fort Worth, TX 9.46 4.40 16.81 10.57 5.95 22.75

Cincinnati, OH Denver, CO 15.57 7.61 26.69 6.42 3.75 13.14

Cincinnati, OH Tucson, AZ 17.56 7.72 28.73 5.69 3.48 12.95

Cincinnati, OH Phoenix, AZ 24.65 12.54 35.86 4.06 2.79 7.98

Cincinnati, OH Hartford, CT 10.65 4.61 17.73 9.39 5.64 21.70

Cincinnati, OH Seattle, WA 17.32 8.63 27.35 5.77 3.66 11.59

Cincinnati, OH Washington, DC (Metropolitan Area) 8.85 4.14 15.29 11.30 6.54 24.17

Cincinnati, OH St. Louis, MO 28.19 13.45 42.44 3.55 2.36 7.43

Cincinnati, OH Jacksonville, FL 23.32 11.49 35.99 4.29 2.78 8.70

Cincinnati, OH Detroit, MI 23.24 12.57 38.56 4.30 2.59 7.95

Cincinnati, OH Houston, TX 14.68 6.21 25.34 6.81 3.95 16.10

Cincinnati, OH Orlando, FL 10.90 4.53 20.42 9.18 4.90 22.08

Cincinnati, OH Minneapolis/St. Paul, MN 11.01 4.87 18.92 9.08 5.29 20.55

Cincinnati, OH New York City, NY (Metropolitan Area) 8.51 4.20 14.07 11.75 7.11 23.80

Cincinnati, OH Fort Myers, FL 13.97 6.04 24.49 7.16 4.08 16.55

Cincinnati, OH Grand Rapids, MI 28.25 15.74 37.93 3.54 2.64 6.35

Cincinnati, OH Greensboro/High Point, NC 16.36 8.31 26.58 6.11 3.76 12.04

Cincinnati, OH Las Vegas, NV 25.28 12.27 40.88 3.96 2.45 8.15

Cincinnati, OH San Francisco, CA (Metropolitan Area) 14.00 6.65 23.34 7.14 4.28 15.03

Cincinnati, OH Miami, FL (Metropolitan Area) 12.97 5.93 22.61 7.71 4.42 16.87

Cincinnati, OH Los Angeles, CA (Metropolitan Area) 17.83 9.74 27.43 5.61 3.65 10.27

Cincinnati, OH Sacramento, CA 21.50 11.17 31.97 4.65 3.13 8.96

Cincinnati, OH Tampa, FL (Metropolitan Area) 13.94 5.82 23.04 7.18 4.34 17.17

Cincinnati, OH Kansas City, MO 17.40 9.39 25.01 5.75 4.00 10.64

Cincinnati, OH San Antonio, TX 23.21 13.75 33.62 4.31 2.97 7.27

Cincinnati, OH Memphis, TN 11.74 5.33 21.36 8.52 4.68 18.77

Cincinnati, OH New Orleans, LA 20.64 8.97 36.91 4.85 2.71 11.15

Cincinnati, OH San Diego, CA 20.45 10.62 31.16 4.89 3.21 9.42

Cincinnati, OH Norfolk, VA (Metropolitan Area) 41.71 26.96 56.14 2.40 1.78 3.71

Cincinnati, OH West Palm Beach/Palm Beach, FL 17.97 7.88 31.51 5.56 3.17 12.69

Cincinnati, OH Portland, OR 16.62 7.28 26.98 6.02 3.71 13.75

Cincinnati, OH Philadelphia, PA 11.79 5.18 19.37 8.48 5.16 19.31

Cincinnati, OH Raleigh/Durham, NC 10.65 4.60 19.18 9.39 5.21 21.74

Cincinnati, OH Richmond, VA 13.37 5.79 23.10 7.48 4.33 17.26

Cincinnati, OH Salt Lake City, UT 13.25 6.11 23.90 7.55 4.18 16.37

Cincinnati, OH Savannah, GA 15.38 6.56 25.45 6.50 3.93 15.24

Cincinnati, OH Sarasota/Bradenton, FL 19.60 8.04 33.65 5.10 2.97 12.43

Cincinnati, OH Syracuse, NY 11.96 4.87 21.42 8.36 4.67 20.53

Lewiston, ID Seattle, WA 13.98 6.50 25.18 7.15 3.97 15.38

Midland/Odessa, TX Phoenix, AZ 16.80 7.22 27.87 5.95 3.59 13.85

Midland/Odessa, TX Washington, DC (Metropolitan Area) 10.62 4.47 18.57 9.41 5.39 22.38

Midland/Odessa, TX Orlando, FL 12.22 5.12 20.97 8.19 4.77 19.53

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Midland/Odessa, TX New York City, NY (Metropolitan Area) 10.84 4.70 19.62 9.22 5.10 21.29

Midland/Odessa, TX San Francisco, CA (Metropolitan Area) 11.41 4.89 22.15 8.76 4.52 20.46

Midland/Odessa, TX San Antonio, TX 23.04 9.53 40.74 4.34 2.45 10.50

Midland/Odessa, TX New Orleans, LA 15.68 5.82 26.75 6.38 3.74 17.19

Midland/Odessa, TX San Diego, CA 13.65 5.07 25.79 7.32 3.88 19.74

Midland/Odessa, TX Oklahoma City, OK 25.64 11.58 42.66 3.90 2.34 8.64

Midland/Odessa, TX Tulsa, OK 23.87 10.40 40.90 4.19 2.44 9.62

Saginaw/Bay City/Midland, MI Washington, DC (Metropolitan Area) 8.87 3.65 16.41 11.27 6.09 27.37

Saginaw/Bay City/Midland, MI San Francisco, CA (Metropolitan Area) 12.55 4.66 22.22 7.97 4.50 21.45

Sacramento, CA Tucson, AZ 13.63 5.19 24.88 7.33 4.02 19.26

Sacramento, CA Seattle, WA 6.87 2.40 12.13 14.56 8.24 41.65

Sacramento, CA Washington, DC (Metropolitan Area) 7.45 3.10 12.78 13.42 7.83 32.26

Sacramento, CA St. Louis, MO 8.30 4.03 14.28 12.05 7.00 24.84

Sacramento, CA Spokane, WA 12.50 5.36 21.80 8.00 4.59 18.65

Sacramento, CA Tampa, FL (Metropolitan Area) 9.29 3.98 17.50 10.77 5.72 25.10

Sacramento, CA San Antonio, TX 14.75 6.94 26.06 6.78 3.84 14.41

Sacramento, CA San Diego, CA 11.21 4.80 20.89 8.92 4.79 20.85

Sacramento, CA Salt Lake City, UT 11.15 4.85 19.05 8.97 5.25 20.63

Sacramento, CA Tulsa, OK 18.07 6.85 31.16 5.53 3.21 14.61

Tampa, FL (Metropolitan Area) Tucson, AZ 11.46 4.91 20.03 8.73 4.99 20.36

Tampa, FL (Metropolitan Area) Washington, DC (Metropolitan Area) 5.21 1.77 11.81 19.19 8.46 56.64

Tampa, FL (Metropolitan Area) Wichita, KS 19.38 8.81 31.56 5.16 3.17 11.36

Tampa, FL (Metropolitan Area) Wilmington, NC 10.01 4.39 17.11 9.99 5.84 22.80

Tampa, FL (Metropolitan Area) Tulsa, OK 8.98 3.33 17.08 11.14 5.86 29.99

Tampa, FL (Metropolitan Area) Toledo, OH 21.44 8.78 36.18 4.66 2.76 11.38

Tampa, FL (Metropolitan Area) Traverse City, MI 25.23 12.06 41.03 3.96 2.44 8.29

Kansas City, MO Pittsburgh, PA 10.31 4.24 18.55 9.70 5.39 23.58

Kansas City, MO Tucson, AZ 15.14 5.89 26.77 6.60 3.74 16.99

Kansas City, MO Phoenix, AZ 4.95 2.28 9.50 20.20 10.53 43.90

Kansas City, MO Seattle, WA 5.61 2.35 9.80 17.81 10.20 42.51

Kansas City, MO Nashville, TN 13.01 5.58 23.29 7.68 4.29 17.92

Kansas City, MO Washington, DC (Metropolitan Area) 6.52 2.87 12.33 15.34 8.11 34.86

Kansas City, MO St. Louis, MO 12.81 5.79 19.31 7.80 5.18 17.28

Kansas City, MO Orlando, FL 8.81 3.85 15.83 11.35 6.32 25.96

Kansas City, MO Minneapolis/St. Paul, MN 13.01 6.95 19.65 7.68 5.09 14.39

Kansas City, MO New York City, NY (Metropolitan Area) 6.06 2.57 11.25 16.51 8.89 38.88

Kansas City, MO Spokane, WA 8.53 3.24 16.16 11.73 6.19 30.89

Kansas City, MO Las Vegas, NV 6.55 3.01 11.43 15.26 8.75 33.23

Kansas City, MO San Francisco, CA (Metropolitan Area) 3.27 1.40 5.78 30.63 17.34 71.29

Kansas City, MO Miami, FL (Metropolitan Area) 15.11 8.81 22.36 6.62 4.47 11.35

Kansas City, MO Los Angeles, CA (Metropolitan Area) 3.48 1.59 7.62 28.77 13.13 62.84

Kansas City, MO Little Rock, AR 15.02 5.58 26.91 6.66 3.72 17.91

Kansas City, MO Lubbock, TX 14.87 6.80 27.30 6.73 3.66 14.71

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Kansas City, MO Louisville, KY 18.07 8.37 34.57 5.53 2.89 11.95

Kansas City, MO Sacramento, CA 7.59 3.54 13.54 13.18 7.38 28.26

Kansas City, MO Tampa, FL (Metropolitan Area) 9.70 4.39 16.66 10.31 6.00 22.78

Kansas City, MO San Antonio, TX 11.99 5.26 21.95 8.34 4.56 19.00

Kansas City, MO Milwaukee, WI 17.70 9.67 26.86 5.65 3.72 10.34

Kansas City, MO Madison, WI 5.36 2.45 11.37 18.65 8.80 40.87

Kansas City, MO New Orleans, LA 11.82 5.33 23.54 8.46 4.25 18.77

Kansas City, MO San Diego, CA 7.36 3.19 13.66 13.58 7.32 31.33

Kansas City, MO Norfolk, VA (Metropolitan Area) 22.50 13.13 31.71 4.44 3.15 7.62

Kansas City, MO Pensacola, FL 18.69 8.17 32.72 5.35 3.06 12.24

Kansas City, MO Oklahoma City, OK 22.95 10.51 37.05 4.36 2.70 9.51

Kansas City, MO West Palm Beach/Palm Beach, FL 10.26 4.10 20.25 9.74 4.94 24.37

Kansas City, MO Portland, OR 3.99 1.59 8.17 25.05 12.23 62.77

Kansas City, MO Philadelphia, PA 7.88 3.93 13.42 12.70 7.45 25.43

Kansas City, MO Palm Springs, CA 15.04 6.15 28.96 6.65 3.45 16.27

Kansas City, MO Raleigh/Durham, NC 9.28 3.11 15.34 10.77 6.52 32.18

Kansas City, MO Richmond, VA 9.11 4.24 16.39 10.98 6.10 23.60

Kansas City, MO Reno, NV 14.51 5.46 25.17 6.89 3.97 18.31

Kansas City, MO Rochester, NY 11.26 4.69 19.26 8.88 5.19 21.31

Kansas City, MO Salt Lake City, UT 19.72 8.58 33.73 5.07 2.96 11.66

Kansas City, MO Savannah, GA 20.11 9.90 31.02 4.97 3.22 10.10

Kansas City, MO Syracuse, NY 10.81 4.82 18.94 9.25 5.28 20.76

Kansas City, MO Knoxville, TN 10.20 4.24 17.42 9.80 5.74 23.61

San Antonio, TX Tucson, AZ 26.43 11.74 41.80 3.78 2.39 8.52

San Antonio, TX Shreveport, LA 10.30 4.25 20.88 9.71 4.79 23.52

San Antonio, TX Seattle, WA 8.90 3.77 16.21 11.24 6.17 26.52

San Antonio, TX Washington, DC (Metropolitan Area) 7.46 3.19 13.85 13.41 7.22 31.35

San Antonio, TX Wichita, KS 13.37 5.99 23.13 7.48 4.32 16.70

San Antonio, TX St. Louis, MO 13.01 6.04 24.32 7.69 4.11 16.56

San Antonio, TX Valparaiso, FL 22.57 9.61 36.55 4.43 2.74 10.41

San Antonio, TX Sioux Falls, SD 18.50 7.00 31.31 5.40 3.19 14.28

San Antonio, TX Spokane, WA 9.45 4.20 18.25 10.58 5.48 23.82

San Antonio, TX San Francisco, CA (Metropolitan Area) 9.90 4.42 17.74 10.10 5.64 22.62

San Antonio, TX Tampa, FL (Metropolitan Area) 6.12 2.53 12.48 16.35 8.01 39.49

San Antonio, TX San Diego, CA 8.32 3.25 15.23 12.02 6.57 30.75

San Antonio, TX West Palm Beach/Palm Beach, FL 12.53 5.35 21.75 7.98 4.60 18.69

San Antonio, TX Tulsa, OK 12.88 5.41 25.09 7.77 3.99 18.47

San Antonio, TX Syracuse, NY 16.93 8.15 29.05 5.91 3.44 12.27

Memphis, TN Pittsburgh, PA 17.39 6.29 30.22 5.75 3.31 15.89

Memphis, TN Phoenix, AZ 18.95 8.48 30.73 5.28 3.25 11.79

Memphis, TN Seattle, WA 9.61 3.85 17.33 10.41 5.77 25.98

Memphis, TN Washington, DC (Metropolitan Area) 10.07 5.02 18.35 9.93 5.45 19.92

Memphis, TN Orlando, FL 13.66 6.30 22.85 7.32 4.38 15.88

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Memphis, TN Minneapolis/St. Paul, MN 9.92 4.56 18.45 10.08 5.42 21.95

Memphis, TN New York City, NY (Metropolitan Area) 8.04 3.03 15.08 12.44 6.63 33.03

Memphis, TN San Francisco, CA (Metropolitan Area) 9.76 4.06 17.01 10.25 5.88 24.63

Memphis, TN Miami, FL (Metropolitan Area) 8.94 3.51 17.33 11.18 5.77 28.50

Memphis, TN Sacramento, CA 38.40 25.81 50.03 2.60 2.00 3.87

Memphis, TN Tampa, FL (Metropolitan Area) 10.59 4.03 19.60 9.44 5.10 24.83

Memphis, TN San Antonio, TX 17.21 8.43 28.63 5.81 3.49 11.86

Memphis, TN Omaha, NE 9.61 3.70 22.02 10.41 4.54 27.06

Memphis, TN Milwaukee, WI 11.28 4.84 21.56 8.86 4.64 20.67

Memphis, TN New Orleans, LA 13.50 5.21 27.15 7.41 3.68 19.20

Memphis, TN San Diego, CA 20.12 9.81 31.18 4.97 3.21 10.20

Memphis, TN Norfolk, VA (Metropolitan Area) 9.13 3.62 17.64 10.96 5.67 27.59

Memphis, TN West Palm Beach/Palm Beach, FL 15.46 6.83 28.92 6.47 3.46 14.64

Memphis, TN Portland, OR 16.28 6.89 27.09 6.14 3.69 14.51

Memphis, TN Philadelphia, PA 14.37 5.93 26.95 6.96 3.71 16.85

Memphis, TN Raleigh/Durham, NC 23.09 8.89 40.46 4.33 2.47 11.25

Memphis, TN Richmond, VA 14.76 6.21 24.59 6.77 4.07 16.11

Memphis, TN Salt Lake City, UT 16.45 7.61 25.83 6.08 3.87 13.14

Memphis, TN Savannah, GA 13.12 6.06 24.39 7.62 4.10 16.52

Mission/McAllen/Edinburg, TX Washington, DC (Metropolitan Area) 13.12 5.36 22.70 7.62 4.41 18.64

Mission/McAllen/Edinburg, TX Orlando, FL 16.54 6.70 30.03 6.05 3.33 14.92

Mission/McAllen/Edinburg, TX New York City, NY (Metropolitan Area) 9.91 4.31 17.14 10.09 5.83 23.23

Mission/McAllen/Edinburg, TX San Francisco, CA (Metropolitan Area) 10.76 4.53 19.17 9.29 5.22 22.08

Medford, OR Phoenix, AZ 10.64 4.39 19.10 9.40 5.24 22.79

Medford, OR Seattle, WA 9.46 3.93 16.85 10.57 5.94 25.48

Medford, OR San Diego, CA 19.00 7.66 30.82 5.26 3.24 13.06

Medford, OR Portland, OR 16.33 6.63 27.89 6.12 3.59 15.08

Montgomery, AL Washington, DC (Metropolitan Area) 13.25 5.79 22.64 7.55 4.42 17.26

Montgomery, AL Orlando, FL 12.33 5.17 22.53 8.11 4.44 19.34

Montgomery, AL New York City, NY (Metropolitan Area) 16.31 8.05 28.04 6.13 3.57 12.42

Montgomery, AL San Antonio, TX 21.64 8.35 38.00 4.62 2.63 11.97

Minot, ND Washington, DC (Metropolitan Area) 9.86 3.95 17.98 10.14 5.56 25.34

Omaha, NE Pittsburgh, PA 14.99 6.60 27.86 6.67 3.59 15.15

Omaha, NE Tucson, AZ 21.02 8.08 34.56 4.76 2.89 12.38

Omaha, NE Phoenix, AZ 7.57 3.36 13.63 13.22 7.34 29.79

Omaha, NE Seattle, WA 13.16 6.19 22.14 7.60 4.52 16.15

Omaha, NE Washington, DC (Metropolitan Area) 6.67 2.77 13.15 14.99 7.61 36.12

Omaha, NE St. Louis, MO 34.53 20.64 48.06 2.90 2.08 4.84

Omaha, NE Orlando, FL 8.11 3.13 16.20 12.34 6.17 31.93

Omaha, NE Spokane, WA 22.66 11.71 34.68 4.41 2.88 8.54

Omaha, NE San Francisco, CA (Metropolitan Area) 5.49 2.04 10.26 18.22 9.75 49.13

Omaha, NE Sacramento, CA 9.27 3.94 16.59 10.78 6.03 25.36

Omaha, NE Tampa, FL (Metropolitan Area) 11.56 4.39 19.72 8.65 5.07 22.78

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Omaha, NE San Antonio, TX 13.67 5.77 26.11 7.32 3.83 17.34

Omaha, NE San Diego, CA 12.37 4.87 23.14 8.08 4.32 20.53

Omaha, NE Portland, OR 8.00 3.34 14.88 12.49 6.72 29.95

Omaha, NE Philadelphia, PA 10.19 4.50 18.56 9.81 5.39 22.23

Omaha, NE Raleigh/Durham, NC 11.81 4.81 20.29 8.47 4.93 20.77

Omaha, NE Reno, NV 15.08 5.29 28.75 6.63 3.48 18.89

Omaha, NE Salt Lake City, UT 14.10 6.84 26.68 7.09 3.75 14.62

Milwaukee, WI Pittsburgh, PA 11.95 4.99 22.47 8.37 4.45 20.02

Milwaukee, WI Tucson, AZ 24.67 10.82 37.42 4.05 2.67 9.25

Milwaukee, WI Phoenix, AZ 19.07 9.01 29.87 5.24 3.35 11.10

Milwaukee, WI Seattle, WA 11.75 5.01 20.79 8.51 4.81 19.98

Milwaukee, WI Nashville, TN 11.37 4.94 24.14 8.79 4.14 20.25

Milwaukee, WI Washington, DC (Metropolitan Area) 14.56 7.36 23.75 6.87 4.21 13.59

Milwaukee, WI Wichita, KS 10.46 4.04 19.58 9.56 5.11 24.76

Milwaukee, WI St. Louis, MO 17.86 7.99 32.78 5.60 3.05 12.52

Milwaukee, WI Orlando, FL 16.16 7.94 28.13 6.19 3.56 12.59

Milwaukee, WI Minneapolis/St. Paul, MN 14.45 8.88 20.17 6.92 4.96 11.26

Milwaukee, WI New York City, NY (Metropolitan Area) 8.06 3.41 15.02 12.41 6.66 29.31

Milwaukee, WI San Francisco, CA (Metropolitan Area) 19.87 9.43 30.81 5.03 3.25 10.61

Milwaukee, WI Sacramento, CA 12.11 4.49 23.06 8.26 4.34 22.26

Milwaukee, WI Tampa, FL (Metropolitan Area) 25.67 14.01 38.52 3.89 2.60 7.14

Milwaukee, WI San Antonio, TX 11.79 4.89 21.86 8.48 4.57 20.46

Milwaukee, WI Omaha, NE 8.61 3.41 16.59 11.61 6.03 29.29

Milwaukee, WI New Orleans, LA 16.10 6.57 29.47 6.21 3.39 15.22

Milwaukee, WI San Diego, CA 17.16 8.11 29.62 5.83 3.38 12.33

Milwaukee, WI Norfolk, VA (Metropolitan Area) 16.08 7.30 25.95 6.22 3.85 13.71

Milwaukee, WI Oklahoma City, OK 13.39 5.94 23.66 7.47 4.23 16.84

Milwaukee, WI West Palm Beach/Palm Beach, FL 17.86 7.97 32.55 5.60 3.07 12.55

Milwaukee, WI Portland, OR 9.40 3.62 16.64 10.64 6.01 27.66

Milwaukee, WI Philadelphia, PA 12.37 4.75 22.64 8.09 4.42 21.05

Milwaukee, WI Raleigh/Durham, NC 21.06 8.83 35.24 4.75 2.84 11.33

Milwaukee, WI Richmond, VA 12.45 5.85 22.25 8.04 4.50 17.09

Milwaukee, WI Reno, NV 29.17 13.01 48.70 3.43 2.05 7.69

Milwaukee, WI Rochester, NY 13.40 5.90 23.31 7.46 4.29 16.96

Milwaukee, WI Salt Lake City, UT 16.70 8.26 27.45 5.99 3.64 12.11

Milwaukee, WI Tulsa, OK 20.83 10.70 33.30 4.80 3.00 9.35

Milwaukee, WI Savannah, GA 23.07 12.82 35.88 4.34 2.79 7.80

Milwaukee, WI Sarasota/Bradenton, FL 25.77 10.86 43.85 3.88 2.28 9.21

Melbourne, FL Washington, DC (Metropolitan Area) 10.27 4.47 19.61 9.73 5.10 22.38

Melbourne, FL New York City, NY (Metropolitan Area) 28.52 12.90 45.40 3.51 2.20 7.75

Quad Cities, IL (Metropolitan Area) Seattle, WA 11.98 5.24 21.44 8.34 4.67 19.09

Quad Cities, IL (Metropolitan Area) Washington, DC (Metropolitan Area) 12.28 5.54 20.82 8.15 4.80 18.06

Quad Cities, IL (Metropolitan Area) San Francisco, CA (Metropolitan Area) 16.39 7.48 28.42 6.10 3.52 13.37

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Quad Cities, IL (Metropolitan Area) Tampa, FL (Metropolitan Area) 17.27 6.52 31.39 5.79 3.19 15.34

Quad Cities, IL (Metropolitan Area) San Diego, CA 14.71 6.42 25.27 6.80 3.96 15.57

Quad Cities, IL (Metropolitan Area) Raleigh/Durham, NC 9.24 3.66 17.63 10.83 5.67 27.35

Monroe, LA Washington, DC (Metropolitan Area) 19.59 8.03 31.89 5.11 3.14 12.45

Monroe, LA New York City, NY (Metropolitan Area) 11.00 4.76 20.84 9.09 4.80 21.02

Madison, WI Pittsburgh, PA 6.88 2.71 12.87 14.53 7.77 36.91

Madison, WI Phoenix, AZ 12.85 5.32 21.96 7.78 4.55 18.79

Madison, WI Seattle, WA 10.10 4.40 17.46 9.90 5.73 22.72

Madison, WI Nashville, TN 11.76 4.79 22.08 8.50 4.53 20.86

Madison, WI Washington, DC (Metropolitan Area) 9.47 4.37 18.26 10.56 5.48 22.87

Madison, WI Orlando, FL 13.26 5.94 26.84 7.54 3.73 16.84

Madison, WI Minneapolis/St. Paul, MN 11.46 5.23 19.73 8.73 5.07 19.11

Madison, WI New York City, NY (Metropolitan Area) 5.33 2.58 11.29 18.76 8.85 38.74

Madison, WI San Francisco, CA (Metropolitan Area) 9.58 4.16 16.50 10.44 6.06 24.04

Madison, WI Miami, FL (Metropolitan Area) 25.31 14.08 36.48 3.95 2.74 7.10

Madison, WI Tampa, FL (Metropolitan Area) 21.08 10.27 33.96 4.74 2.94 9.74

Madison, WI San Antonio, TX 13.72 5.37 23.68 7.29 4.22 18.63

Madison, WI San Diego, CA 7.32 3.12 13.96 13.66 7.16 32.09

Madison, WI Portland, OR 7.83 3.29 15.28 12.77 6.55 30.44

Madison, WI Philadelphia, PA 8.92 3.30 16.93 11.22 5.91 30.34

Madison, WI Raleigh/Durham, NC 6.61 2.32 12.04 15.12 8.32 43.30

Madison, WI Salt Lake City, UT 17.24 6.94 30.33 5.80 3.30 14.40

Missoula, MT Phoenix, AZ 10.10 4.52 18.60 9.90 5.38 22.11

Missoula, MT Seattle, WA 9.49 4.26 17.85 10.54 5.60 23.47

Missoula, MT Washington, DC (Metropolitan Area) 9.15 3.43 16.51 10.93 6.06 29.13

Missoula, MT New York City, NY (Metropolitan Area) 7.12 2.68 14.98 14.05 6.68 37.26

Missoula, MT San Francisco, CA (Metropolitan Area) 7.41 3.31 13.78 13.50 7.26 30.22

Missoula, MT San Diego, CA 10.21 4.05 19.50 9.79 5.13 24.70

Missoula, MT Portland, OR 27.57 13.27 44.04 3.63 2.27 7.54

New Orleans, LA Pittsburgh, PA 11.64 5.52 22.16 8.59 4.51 18.11

New Orleans, LA Tucson, AZ 26.76 13.11 42.72 3.74 2.34 7.63

New Orleans, LA Phoenix, AZ 12.03 5.43 22.86 8.31 4.37 18.43

New Orleans, LA Seattle, WA 18.64 7.82 33.82 5.36 2.96 12.78

New Orleans, LA Washington, DC (Metropolitan Area) 9.10 3.87 18.23 10.98 5.49 25.81

New Orleans, LA Wichita, KS 15.71 6.71 29.38 6.37 3.40 14.91

New Orleans, LA St. Louis, MO 26.60 10.02 48.26 3.76 2.07 9.98

New Orleans, LA Orlando, FL 11.45 4.49 21.09 8.73 4.74 22.28

New Orleans, LA New York City, NY (Metropolitan Area) 11.32 5.22 20.88 8.83 4.79 19.16

New Orleans, LA Spokane, WA 12.41 5.42 22.43 8.06 4.46 18.47

New Orleans, LA San Francisco, CA (Metropolitan Area) 15.74 7.56 27.77 6.35 3.60 13.24

New Orleans, LA Sacramento, CA 15.35 6.09 26.19 6.51 3.82 16.43

New Orleans, LA Tampa, FL (Metropolitan Area) 11.83 4.81 23.89 8.45 4.19 20.81

New Orleans, LA San Antonio, TX 12.85 5.12 24.86 7.78 4.02 19.54

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

New Orleans, LA Omaha, NE 17.45 7.24 33.85 5.73 2.95 13.82

New Orleans, LA San Diego, CA 18.53 7.34 31.60 5.40 3.16 13.63

New Orleans, LA Norfolk, VA (Metropolitan Area) 12.24 5.18 21.48 8.17 4.66 19.30

New Orleans, LA Oklahoma City, OK 16.06 7.65 32.88 6.23 3.04 13.06

New Orleans, LA West Palm Beach/Palm Beach, FL 15.02 6.83 27.33 6.66 3.66 14.64

New Orleans, LA Portland, OR 12.48 5.54 23.72 8.01 4.22 18.06

New Orleans, LA Philadelphia, PA 12.15 4.86 23.80 8.23 4.20 20.59

New Orleans, LA Portland, ME 7.63 3.14 15.05 13.10 6.64 31.86

New Orleans, LA Raleigh/Durham, NC 15.79 6.62 29.19 6.33 3.43 15.12

New Orleans, LA Richmond, VA 9.60 4.37 19.62 10.41 5.10 22.87

New Orleans, LA Reno, NV 14.78 6.77 29.09 6.76 3.44 14.76

New Orleans, LA Rochester, NY 13.73 5.20 27.69 7.28 3.61 19.25

New Orleans, LA Salt Lake City, UT 15.53 6.60 29.78 6.44 3.36 15.15

New Orleans, LA Tulsa, OK 14.27 5.84 29.53 7.01 3.39 17.13

New Orleans, LA Savannah, GA 10.31 3.33 19.74 9.70 5.07 30.04

New Orleans, LA Syracuse, NY 16.38 5.70 30.21 6.11 3.31 17.53

San Diego, CA Tucson, AZ 10.47 3.70 17.63 9.55 5.67 27.05

San Diego, CA Seattle, WA 5.27 2.46 9.31 18.96 10.75 40.73

San Diego, CA Washington, DC (Metropolitan Area) 4.86 2.12 9.30 20.57 10.77 47.19

San Diego, CA Wichita, KS 15.48 7.29 25.47 6.46 3.93 13.72

San Diego, CA St. Louis, MO 8.01 3.54 14.90 12.49 6.71 28.34

San Diego, CA Sioux Falls, SD 25.73 12.31 40.91 3.89 2.44 8.13

San Diego, CA Spokane, WA 10.32 4.13 18.70 9.69 5.35 24.23

San Diego, CA San Francisco, CA (Metropolitan Area) 6.73 2.74 12.46 14.86 8.03 36.44

San Diego, CA Tampa, FL (Metropolitan Area) 6.08 2.87 11.80 16.45 8.47 34.90

San Diego, CA West Palm Beach/Palm Beach, FL 12.79 5.17 22.88 7.82 4.37 19.35

San Diego, CA Tulsa, OK 15.25 6.13 27.48 6.56 3.64 16.31

San Diego, CA Savannah, GA 17.75 8.65 28.76 5.63 3.48 11.56

San Diego, CA Springfield, MO 17.28 7.06 30.25 5.79 3.31 14.16

San Diego, CA Syracuse, NY 15.75 7.05 26.71 6.35 3.74 14.18

Norfolk, VA (Metropolitan Area) Pittsburgh, PA 5.76 2.25 12.60 17.37 7.94 44.40

Norfolk, VA (Metropolitan Area) Tucson, AZ 12.20 5.03 24.46 8.20 4.09 19.88

Norfolk, VA (Metropolitan Area) Phoenix, AZ 10.79 4.98 19.21 9.27 5.21 20.10

Norfolk, VA (Metropolitan Area) Seattle, WA 16.56 7.65 27.00 6.04 3.70 13.06

Norfolk, VA (Metropolitan Area) Washington, DC (Metropolitan Area) 19.24 12.26 26.20 5.20 3.82 8.16

Norfolk, VA (Metropolitan Area) St. Louis, MO 20.16 9.89 32.95 4.96 3.03 10.11

Norfolk, VA (Metropolitan Area) Orlando, FL 17.96 9.26 28.95 5.57 3.45 10.80

Norfolk, VA (Metropolitan Area) San Francisco, CA (Metropolitan Area) 9.21 4.18 15.51 10.85 6.45 23.93

Norfolk, VA (Metropolitan Area) Sacramento, CA 17.03 8.49 25.82 5.87 3.87 11.78

Norfolk, VA (Metropolitan Area) Tampa, FL (Metropolitan Area) 10.11 4.28 17.30 9.89 5.78 23.37

Norfolk, VA (Metropolitan Area) San Antonio, TX 14.68 6.18 24.83 6.81 4.03 16.19

Norfolk, VA (Metropolitan Area) Omaha, NE 11.20 4.90 22.00 8.93 4.55 20.40

Norfolk, VA (Metropolitan Area) San Diego, CA 10.12 4.77 17.97 9.88 5.57 20.96

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Norfolk, VA (Metropolitan Area) Pensacola, FL 18.39 9.28 30.36 5.44 3.29 10.78

Norfolk, VA (Metropolitan Area) Oklahoma City, OK 11.55 5.09 19.97 8.66 5.01 19.64

Norfolk, VA (Metropolitan Area) West Palm Beach/Palm Beach, FL 11.32 5.04 20.01 8.83 5.00 19.85

Norfolk, VA (Metropolitan Area) Portland, OR 16.58 7.44 27.15 6.03 3.68 13.44

Norfolk, VA (Metropolitan Area) Philadelphia, PA 3.81 2.59 11.04 26.22 9.08 38.71

Norfolk, VA (Metropolitan Area) Portland, ME 19.35 10.56 30.90 5.17 3.24 9.47

Norfolk, VA (Metropolitan Area) Reno, NV 14.72 6.62 25.88 6.80 3.86 15.10

Norfolk, VA (Metropolitan Area) Rochester, NY 14.52 6.05 25.01 6.89 4.00 16.52

Norfolk, VA (Metropolitan Area) Salt Lake City, UT 22.15 11.10 32.80 4.52 3.05 9.01

Norfolk, VA (Metropolitan Area) Tulsa, OK 15.97 7.01 26.23 6.26 3.81 14.26

Norfolk, VA (Metropolitan Area) Savannah, GA 13.44 6.06 23.59 7.44 4.24 16.51

Pensacola, FL Pittsburgh, PA 23.61 13.19 35.97 4.23 2.78 7.58

Pensacola, FL Phoenix, AZ 20.73 8.91 34.85 4.82 2.87 11.22

Pensacola, FL Seattle, WA 12.55 5.37 22.42 7.97 4.46 18.63

Pensacola, FL Washington, DC (Metropolitan Area) 25.23 13.62 36.88 3.96 2.71 7.34

Pensacola, FL St. Louis, MO 10.67 4.30 20.55 9.37 4.87 23.28

Pensacola, FL San Francisco, CA (Metropolitan Area) 15.93 7.67 26.89 6.28 3.72 13.03

Pensacola, FL San Antonio, TX 19.51 8.77 33.10 5.13 3.02 11.40

Pensacola, FL San Diego, CA 14.68 6.33 24.42 6.81 4.10 15.80

Pensacola, FL Philadelphia, PA 17.25 7.57 28.53 5.80 3.51 13.22

Pensacola, FL Raleigh/Durham, NC 18.50 9.39 29.56 5.40 3.38 10.65

Oklahoma City, OK Pittsburgh, PA 14.18 5.40 27.96 7.05 3.58 18.52

Oklahoma City, OK Tucson, AZ 19.02 7.95 30.31 5.26 3.30 12.58

Oklahoma City, OK Phoenix, AZ 8.32 4.01 14.96 12.03 6.68 24.91

Oklahoma City, OK Seattle, WA 8.92 3.75 16.57 11.21 6.04 26.69

Oklahoma City, OK Washington, DC (Metropolitan Area) 5.88 1.94 11.28 17.01 8.87 51.64

Oklahoma City, OK St. Louis, MO 17.39 7.86 29.59 5.75 3.38 12.73

Oklahoma City, OK Orlando, FL 10.87 4.64 19.09 9.20 5.24 21.57

Oklahoma City, OK San Francisco, CA (Metropolitan Area) 5.22 1.95 10.60 19.14 9.43 51.39

Oklahoma City, OK Sacramento, CA 19.32 8.30 32.94 5.18 3.04 12.05

Oklahoma City, OK Tampa, FL (Metropolitan Area) 11.11 4.98 19.59 9.00 5.10 20.07

Oklahoma City, OK San Antonio, TX 11.05 4.56 22.55 9.05 4.44 21.94

Oklahoma City, OK San Diego, CA 14.92 6.00 28.09 6.70 3.56 16.66

Oklahoma City, OK West Palm Beach/Palm Beach, FL 11.04 4.85 19.57 9.06 5.11 20.61

Oklahoma City, OK Portland, OR 8.60 3.90 15.21 11.63 6.57 25.65

Oklahoma City, OK Philadelphia, PA 18.62 8.50 31.08 5.37 3.22 11.76

Oklahoma City, OK Raleigh/Durham, NC 10.95 5.13 19.25 9.13 5.20 19.51

Oklahoma City, OK Reno, NV 10.21 4.26 19.84 9.80 5.04 23.50

Oklahoma City, OK Salt Lake City, UT 21.88 8.82 36.96 4.57 2.71 11.34

Portland, OR Tucson, AZ 13.43 5.78 23.62 7.44 4.23 17.31

Portland, OR Seattle, WA 15.85 6.87 27.37 6.31 3.65 14.55

Portland, OR Washington, DC (Metropolitan Area) 5.56 2.44 9.49 17.98 10.54 41.03

Portland, OR Wichita, KS 10.76 4.48 20.00 9.29 5.00 22.34

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Portland, OR St. Louis, MO 5.97 2.02 12.15 16.74 8.23 49.53

Portland, OR Sioux Falls, SD 16.03 6.66 27.48 6.24 3.64 15.02

Portland, OR Spokane, WA 11.47 4.99 20.84 8.72 4.80 20.05

Portland, OR San Francisco, CA (Metropolitan Area) 7.17 3.13 14.02 13.96 7.13 31.98

Portland, OR Sacramento, CA 10.41 4.38 18.74 9.61 5.34 22.84

Portland, OR Tampa, FL (Metropolitan Area) 6.75 2.83 12.26 14.80 8.16 35.33

Portland, OR San Antonio, TX 13.79 6.10 24.25 7.25 4.12 16.39

Portland, OR San Diego, CA 16.04 7.42 27.73 6.24 3.61 13.48

Portland, OR West Palm Beach/Palm Beach, FL 13.38 6.02 23.63 7.48 4.23 16.61

Portland, OR Raleigh/Durham, NC 7.59 3.26 13.70 13.17 7.30 30.68

Portland, OR Richmond, VA 12.14 5.40 21.59 8.23 4.63 18.53

Portland, OR Reno, NV 12.86 6.02 22.81 7.78 4.38 16.62

Portland, OR Rochester, NY 11.20 4.64 22.85 8.93 4.38 21.55

Portland, OR Salt Lake City, UT 5.62 2.33 10.65 17.80 9.39 42.87

Portland, OR Tulsa, OK 8.58 3.29 16.38 11.66 6.11 30.38

Portland, OR Santa Barbara, CA 20.02 7.45 36.74 4.99 2.72 13.42

Portland, OR Syracuse, NY 13.45 5.78 24.25 7.44 4.12 17.29

Philadelphia, PA Pittsburgh, PA 11.38 6.11 17.20 8.79 5.82 16.37

Philadelphia, PA Tucson, AZ 15.27 6.51 24.66 6.55 4.05 15.37

Philadelphia, PA Phoenix, AZ 9.06 3.79 16.61 11.03 6.02 26.38

Philadelphia, PA Seattle, WA 6.56 2.79 12.30 15.23 8.13 35.90

Philadelphia, PA Washington, DC (Metropolitan Area) 13.40 5.75 24.01 7.46 4.17 17.39

Philadelphia, PA Wichita, KS 12.00 5.32 19.27 8.34 5.19 18.78

Philadelphia, PA St. Louis, MO 8.34 3.63 14.78 11.99 6.77 27.55

Philadelphia, PA Valparaiso, FL 10.65 4.79 19.18 9.39 5.21 20.86

Philadelphia, PA Spokane, WA 14.77 6.65 28.00 6.77 3.57 15.05

Philadelphia, PA Wilmington, NC 12.88 5.53 21.57 7.76 4.64 18.07

Philadelphia, PA San Francisco, CA (Metropolitan Area) 8.68 3.66 14.42 11.52 6.93 27.31

Philadelphia, PA Sacramento, CA 9.99 4.11 18.49 10.01 5.41 24.36

Philadelphia, PA Tampa, FL (Metropolitan Area) 13.19 6.19 22.04 7.58 4.54 16.17

Philadelphia, PA San Antonio, TX 13.57 6.46 21.81 7.37 4.59 15.49

Philadelphia, PA Quad Cities, IL (Metropolitan Area) 15.54 7.25 25.28 6.44 3.96 13.79

Philadelphia, PA San Diego, CA 9.11 3.90 15.99 10.98 6.25 25.67

Philadelphia, PA West Palm Beach/Palm Beach, FL 14.62 6.10 24.86 6.84 4.02 16.39

Philadelphia, PA Portland, OR 9.17 4.25 17.66 10.90 5.66 23.50

Philadelphia, PA Portland, ME 6.06 2.72 11.43 16.49 8.75 36.75

Philadelphia, PA Raleigh/Durham, NC 9.28 5.00 14.44 10.77 6.93 20.02

Philadelphia, PA Richmond, VA 6.68 2.57 14.07 15.02 7.11 38.87

Philadelphia, PA Reno, NV 14.38 5.94 25.06 6.95 3.99 16.84

Philadelphia, PA Rochester, NY 11.89 5.25 21.30 8.41 4.70 19.05

Philadelphia, PA Salt Lake City, UT 12.27 5.84 20.45 8.15 4.89 17.12

Philadelphia, PA Tulsa, OK 16.18 8.34 24.55 6.18 4.07 11.99

Philadelphia, PA Savannah, GA 11.49 4.74 20.85 8.70 4.80 21.12

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Philadelphia, PA Santa Barbara, CA 10.94 4.39 18.69 9.14 5.35 22.79

Philadelphia, PA South Bend, IN 19.36 9.65 32.59 5.17 3.07 10.36

Philadelphia, PA Springfield, MO 11.93 5.02 20.72 8.38 4.83 19.94

Philadelphia, PA Sarasota/Bradenton, FL 22.95 9.87 38.85 4.36 2.57 10.13

Philadelphia, PA Syracuse, NY 15.05 6.72 26.68 6.64 3.75 14.89

Philadelphia, PA Tallahassee, FL 20.23 10.10 29.98 4.94 3.34 9.91

Peoria, IL Phoenix, AZ 14.36 5.89 27.40 6.96 3.65 16.99

Peoria, IL Washington, DC (Metropolitan Area) 7.89 3.25 13.90 12.68 7.20 30.76

Peoria, IL San Francisco, CA (Metropolitan Area) 16.30 7.80 27.67 6.13 3.61 12.83

Peoria, IL Tampa, FL (Metropolitan Area) 21.79 8.40 40.33 4.59 2.48 11.91

Peoria, IL San Diego, CA 14.00 5.43 26.71 7.14 3.74 18.41

Paso Robles/San Luis Obispo, CA Seattle, WA 26.32 12.65 42.02 3.80 2.38 7.90

Paso Robles/San Luis Obispo, CA Washington, DC (Metropolitan Area) 10.69 4.51 18.84 9.36 5.31 22.19

Pasco/Kennewick/Richland, WA Phoenix, AZ 20.53 9.01 33.79 4.87 2.96 11.10

Pasco/Kennewick/Richland, WA Seattle, WA 18.21 8.37 31.15 5.49 3.21 11.94

Pasco/Kennewick/Richland, WA Washington, DC (Metropolitan Area) 7.29 3.63 12.94 13.72 7.73 27.55

Pasco/Kennewick/Richland, WA San Francisco, CA (Metropolitan Area) 9.04 4.03 19.05 11.06 5.25 24.84

Pasco/Kennewick/Richland, WA Sacramento, CA 18.65 8.11 31.41 5.36 3.18 12.33

Pasco/Kennewick/Richland, WA San Diego, CA 26.93 12.84 42.32 3.71 2.36 7.79

Palm Springs, CA Seattle, WA 10.02 4.80 19.62 9.98 5.10 20.83

Palm Springs, CA Washington, DC (Metropolitan Area) 9.35 3.46 16.89 10.69 5.92 28.92

Palm Springs, CA San Francisco, CA (Metropolitan Area) 4.16 1.50 8.63 24.02 11.58 66.62

Palm Springs, CA Portland, OR 11.91 4.92 21.69 8.40 4.61 20.32

Palm Springs, CA Philadelphia, PA 13.47 5.24 24.56 7.42 4.07 19.08

Pullman, WA Seattle, WA 18.42 8.34 30.92 5.43 3.23 11.99

Portland, ME Seattle, WA 13.94 6.21 24.88 7.17 4.02 16.10

Portland, ME Washington, DC (Metropolitan Area) 24.98 11.99 37.66 4.00 2.66 8.34

Portland, ME St. Louis, MO 15.32 6.28 28.18 6.53 3.55 15.91

Portland, ME San Francisco, CA (Metropolitan Area) 9.19 3.86 16.98 10.89 5.89 25.93

Portland, ME Tampa, FL (Metropolitan Area) 10.59 3.92 19.86 9.44 5.04 25.54

Portland, ME San Diego, CA 12.76 5.19 24.38 7.83 4.10 19.28

Portland, ME West Palm Beach/Palm Beach, FL 16.56 6.42 30.32 6.04 3.30 15.59

Portland, ME Raleigh/Durham, NC 9.86 3.86 18.93 10.15 5.28 25.88

Rapid City, SD Washington, DC (Metropolitan Area) 15.75 7.41 25.26 6.35 3.96 13.49

Rapid City, SD San Francisco, CA (Metropolitan Area) 16.12 6.99 28.09 6.20 3.56 14.31

Bend/Redmond, OR Seattle, WA 11.83 4.79 20.81 8.45 4.80 20.89

Bend/Redmond, OR San Francisco, CA (Metropolitan Area) 10.70 3.79 19.61 9.34 5.10 26.44

Bend/Redmond, OR Los Angeles, CA (Metropolitan Area) 9.83 4.13 19.73 10.17 5.07 24.22

Bend/Redmond, OR San Diego, CA 14.04 5.76 25.53 7.12 3.92 17.37

Bend/Redmond, OR Portland, OR 20.76 8.72 37.98 4.82 2.63 11.47

Raleigh/Durham, NC Tucson, AZ 14.24 5.52 25.59 7.02 3.91 18.10

Raleigh/Durham, NC Seattle, WA 7.67 3.33 13.77 13.04 7.26 30.04

Raleigh/Durham, NC Washington, DC (Metropolitan Area) 6.85 2.84 13.90 14.59 7.20 35.24

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Raleigh/Durham, NC St. Louis, MO 7.16 2.96 13.67 13.97 7.31 33.76

Raleigh/Durham, NC San Francisco, CA (Metropolitan Area) 2.79 1.53 5.76 35.95 17.82 65.49

Raleigh/Durham, NC Sacramento, CA 8.21 3.36 15.32 12.18 6.53 29.78

Raleigh/Durham, NC Tampa, FL (Metropolitan Area) 7.34 3.07 13.66 13.63 7.32 32.62

Raleigh/Durham, NC San Antonio, TX 14.30 6.67 25.20 6.99 3.97 14.99

Raleigh/Durham, NC San Diego, CA 5.96 2.86 11.27 16.78 8.87 34.98

Raleigh/Durham, NC West Palm Beach/Palm Beach, FL 8.42 3.68 14.96 11.88 6.69 27.18

Raleigh/Durham, NC Reno, NV 12.48 4.54 22.61 8.02 4.42 22.01

Raleigh/Durham, NC Rochester, NY 8.03 3.33 14.15 12.45 7.07 30.07

Raleigh/Durham, NC Salt Lake City, UT 9.26 3.52 16.52 10.79 6.06 28.39

Raleigh/Durham, NC Tulsa, OK 12.68 4.91 22.20 7.89 4.50 20.37

Raleigh/Durham, NC South Bend, IN 13.31 4.90 25.33 7.51 3.95 20.40

Raleigh/Durham, NC Syracuse, NY 14.17 6.06 22.50 7.06 4.44 16.51

Raleigh/Durham, NC Tallahassee, FL 16.86 8.72 27.17 5.93 3.68 11.46

Richmond, VA Seattle, WA 9.82 3.81 17.05 10.18 5.86 26.25

Richmond, VA St. Louis, MO 20.28 8.98 32.60 4.93 3.07 11.13

Richmond, VA San Francisco, CA (Metropolitan Area) 14.67 6.52 25.60 6.82 3.91 15.34

Richmond, VA Sacramento, CA 17.52 7.65 30.43 5.71 3.29 13.07

Richmond, VA Tampa, FL (Metropolitan Area) 13.33 6.14 24.25 7.50 4.12 16.28

Richmond, VA San Antonio, TX 22.67 11.34 35.80 4.41 2.79 8.82

Richmond, VA San Diego, CA 15.34 6.78 26.61 6.52 3.76 14.75

Richmond, VA West Palm Beach/Palm Beach, FL 13.27 5.36 23.04 7.54 4.34 18.65

Richmond, VA Rochester, NY 10.78 4.11 20.88 9.28 4.79 24.34

Richmond, VA Salt Lake City, UT 11.76 4.18 21.05 8.50 4.75 23.90

Richmond, VA Savannah, GA 24.78 10.90 40.96 4.04 2.44 9.18

Reno, NV Tucson, AZ 24.19 10.58 40.79 4.13 2.45 9.45

Reno, NV Seattle, WA 8.54 3.71 16.36 11.71 6.11 26.98

Reno, NV Washington, DC (Metropolitan Area) 9.08 3.50 18.10 11.01 5.53 28.61

Reno, NV St. Louis, MO 14.12 6.20 23.85 7.08 4.19 16.13

Reno, NV Spokane, WA 18.06 7.72 31.12 5.54 3.21 12.95

Reno, NV San Francisco, CA (Metropolitan Area) 15.30 6.60 28.36 6.53 3.53 15.15

Reno, NV Tampa, FL (Metropolitan Area) 10.99 4.60 21.12 9.10 4.73 21.74

Reno, NV San Antonio, TX 22.71 9.25 37.58 4.40 2.66 10.81

Reno, NV San Diego, CA 21.20 8.74 35.23 4.72 2.84 11.44

Reno, NV Salt Lake City, UT 10.14 4.17 17.55 9.87 5.70 23.98

Reno, NV Tulsa, OK 11.05 4.58 18.78 9.05 5.32 21.84

Roanoke, VA San Francisco, CA (Metropolitan Area) 8.63 3.07 17.88 11.58 5.59 32.52

Roanoke, VA Tampa, FL (Metropolitan Area) 18.93 8.05 31.57 5.28 3.17 12.43

Rochester, NY Seattle, WA 9.55 4.54 16.17 10.47 6.19 22.04

Rochester, NY Washington, DC (Metropolitan Area) 12.44 5.50 21.87 8.04 4.57 18.19

Rochester, NY St. Louis, MO 10.39 4.19 19.22 9.62 5.20 23.87

Rochester, NY San Francisco, CA (Metropolitan Area) 10.19 4.52 17.25 9.82 5.80 22.13

Rochester, NY Tampa, FL (Metropolitan Area) 10.66 4.46 19.08 9.38 5.24 22.43

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Rochester, NY San Antonio, TX 9.59 4.30 17.42 10.42 5.74 23.23

Rochester, NY San Diego, CA 9.80 4.33 16.44 10.20 6.08 23.11

Rochester, NY West Palm Beach/Palm Beach, FL 11.84 4.74 20.88 8.45 4.79 21.10

Rochester, NY Salt Lake City, UT 15.40 7.06 23.66 6.49 4.23 14.16

Salt Lake City, UT Tucson, AZ 27.29 13.02 43.43 3.66 2.30 7.68

Salt Lake City, UT Seattle, WA 3.84 1.64 8.67 26.02 11.53 60.97

Salt Lake City, UT Washington, DC (Metropolitan Area) 4.62 1.79 9.32 21.63 10.74 55.91

Salt Lake City, UT Wichita, KS 10.85 3.74 19.51 9.21 5.13 26.77

Salt Lake City, UT St. Louis, MO 9.10 3.89 16.62 10.99 6.02 25.68

Salt Lake City, UT Sioux Falls, SD 11.35 4.59 21.21 8.81 4.71 21.79

Salt Lake City, UT Spokane, WA 20.61 8.67 35.97 4.85 2.78 11.54

Salt Lake City, UT San Francisco, CA (Metropolitan Area) 7.15 3.01 12.81 13.99 7.81 33.20

Salt Lake City, UT Tampa, FL (Metropolitan Area) 8.07 3.72 14.99 12.39 6.67 26.88

Salt Lake City, UT San Antonio, TX 9.13 3.95 16.99 10.95 5.89 25.30

Salt Lake City, UT San Diego, CA 9.75 4.33 16.90 10.26 5.92 23.08

Salt Lake City, UT West Palm Beach/Palm Beach, FL 11.93 4.77 22.28 8.38 4.49 20.98

Salt Lake City, UT Tulsa, OK 15.49 5.92 27.01 6.45 3.70 16.90

Salt Lake City, UT Syracuse, NY 10.88 4.89 20.39 9.19 4.91 20.44

Tulsa, OK Washington, DC (Metropolitan Area) 7.29 3.14 13.92 13.72 7.18 31.88

Savannah, GA Seattle, WA 14.47 7.15 24.81 6.91 4.03 13.99

Savannah, GA Washington, DC (Metropolitan Area) 14.86 5.75 26.69 6.73 3.75 17.40

Savannah, GA St. Louis, MO 21.40 10.70 31.83 4.67 3.14 9.35

Santa Barbara, CA Seattle, WA 14.96 6.25 27.44 6.69 3.64 16.01

Santa Barbara, CA Washington, DC (Metropolitan Area) 10.34 4.21 18.71 9.67 5.35 23.73

South Bend, IN Washington, DC (Metropolitan Area) 11.85 5.27 21.79 8.44 4.59 18.97

South Bend, IN Tampa, FL (Metropolitan Area) 22.91 10.88 38.21 4.37 2.62 9.19

Philipsburg/State College, PA San Francisco, CA (Metropolitan Area) 10.46 5.10 17.47 9.56 5.72 19.60

Springfield, MO Washington, DC (Metropolitan Area) 11.00 4.94 20.60 9.09 4.85 20.26

Springfield, MO Tampa, FL (Metropolitan Area) 17.44 7.21 30.41 5.73 3.29 13.86

Salinas/Monterey, CA Washington, DC (Metropolitan Area) 9.16 3.48 16.46 10.92 6.08 28.73

Salinas/Monterey, CA San Diego, CA 17.69 7.11 31.72 5.65 3.15 14.06

Springfield, IL Washington, DC (Metropolitan Area) 15.39 7.19 26.46 6.50 3.78 13.91

Sarasota/Bradenton, FL Washington, DC (Metropolitan Area) 17.99 7.10 31.52 5.56 3.17 14.09

Syracuse, NY Washington, DC (Metropolitan Area) 17.04 7.46 29.41 5.87 3.40 13.41

Syracuse, NY Tampa, FL (Metropolitan Area) 17.81 8.44 29.52 5.62 3.39 11.85

Syracuse, NY West Palm Beach/Palm Beach, FL 14.81 7.20 28.67 6.75 3.49 13.89

Tallahassee, FL Washington, DC (Metropolitan Area) 21.11 11.10 30.61 4.74 3.27 9.01

Bristol/Johnson City/Kingsport, TN Dallas/Fort Worth, TX 12.24 5.24 21.57 8.17 4.64 19.07

Bristol/Johnson City/Kingsport, TN Washington, DC (Metropolitan Area) 9.75 4.06 17.57 10.26 5.69 24.61

Bristol/Johnson City/Kingsport, TN Chicago, IL 10.68 4.52 19.01 9.36 5.26 22.10

Bristol/Johnson City/Kingsport, TN Houston, TX 12.22 5.35 19.77 8.18 5.06 18.68

Bristol/Johnson City/Kingsport, TN Orlando, FL 19.78 9.64 33.54 5.05 2.98 10.37

Bristol/Johnson City/Kingsport, TN New York City, NY (Metropolitan Area) 14.68 7.13 23.32 6.81 4.29 14.03

Origin City Destination City Median Lower Upper Median Lower Upper

Online Appendix Table A.1 - Estimation Results for Each City Pair

Profit Margin (%)

Price Elasticity

Bristol/Johnson City/Kingsport, TN San Francisco, CA (Metropolitan Area) 11.48 4.74 19.33 8.71 5.17 21.11

Bristol/Johnson City/Kingsport, TN Miami, FL (Metropolitan Area) 21.31 10.78 34.43 4.69 2.90 9.28

Bristol/Johnson City/Kingsport, TN Los Angeles, CA (Metropolitan Area) 11.14 4.51 20.46 8.97 4.89 22.19

Bristol/Johnson City/Kingsport, TN Tampa, FL (Metropolitan Area) 11.13 4.81 19.32 8.98 5.18 20.80

Bristol/Johnson City/Kingsport, TN Philadelphia, PA 14.39 7.21 23.28 6.95 4.30 13.87

Traverse City, MI Washington, DC (Metropolitan Area) 10.11 4.15 18.87 9.89 5.30 24.10

Knoxville, TN Phoenix, AZ 13.01 5.99 22.02 7.69 4.54 16.71

Knoxville, TN Seattle, WA 14.11 6.77 25.53 7.09 3.92 14.76

Knoxville, TN Washington, DC (Metropolitan Area) 17.87 8.64 29.25 5.60 3.42 11.57

Knoxville, TN St. Louis, MO 12.89 4.96 24.21 7.76 4.13 20.16

Knoxville, TN Orlando, FL 41.53 27.53 53.64 2.41 1.86 3.63

Knoxville, TN Minneapolis/St. Paul, MN 9.37 3.68 18.14 10.67 5.51 27.17

Knoxville, TN New York City, NY (Metropolitan Area) 18.41 10.19 27.35 5.43 3.66 9.81

Knoxville, TN Las Vegas, NV 13.65 5.83 25.34 7.32 3.95 17.16

Knoxville, TN San Francisco, CA (Metropolitan Area) 9.24 3.61 18.03 10.82 5.55 27.68

Knoxville, TN Miami, FL (Metropolitan Area) 13.14 6.21 21.45 7.61 4.66 16.10

Knoxville, TN Los Angeles, CA (Metropolitan Area) 10.87 4.58 19.76 9.20 5.06 21.82

Knoxville, TN Tampa, FL (Metropolitan Area) 19.70 9.08 31.85 5.08 3.14 11.01

Knoxville, TN San Antonio, TX 12.03 3.96 22.09 8.31 4.53 25.26

Knoxville, TN Milwaukee, WI 8.71 3.09 16.90 11.48 5.92 32.41

Knoxville, TN New Orleans, LA 16.60 6.22 29.48 6.02 3.39 16.08

Knoxville, TN San Diego, CA 12.14 4.89 19.63 8.24 5.09 20.47

Knoxville, TN Norfolk, VA (Metropolitan Area) 13.00 5.41 22.80 7.69 4.39 18.48

Knoxville, TN Philadelphia, PA 16.47 8.22 27.55 6.07 3.63 12.17

Knoxville, TN Raleigh/Durham, NC 18.09 8.88 28.69 5.53 3.49 11.26

Knoxville, TN Salt Lake City, UT 12.92 5.80 22.13 7.74 4.52 17.24

Mean 13.26 5.88 23.13 9.01 4.99 21.08

Median 12.38 5.28 22.09 8.08 4.53 18.94

Minimum 2.72 1.18 3.61 2.33 1.67 3.63

Maximum 42.87 27.53 59.99 39.57 27.71 84.81

Standard Deviation 5.52 2.90 8.33 4.25 2.14 10.50

Notes: The results represent the annual estimates obtained one year after the shock. Estimations have been achieved individually for each city pair.

Median, Lower and Upper represent the median, 16th percentile and 84th percentile of the Bayesian draws that satisfy the cond ition of the inverse price

elasticity of demand being in the unit interval.

City Annual City Fixed Effects (with respect to average)

Albany, GA -31.85

Atlantic City, NJ -30.96

Albuquerque, NM -30.41

Albany, NY -29.59

Lawton/Fort Sill, OK -28.52

Amarillo, TX -28.11

Dothan, AL -27.61

Appleton, WI -27.35

Bismarck/Mandan, ND -27.26

Abilene, TX -27.11

Durango, CO -26.80

Aspen, CO -26.67

Bend/Redmond, OR -26.37

Columbus, GA -26.28

Great Falls, MT -26.17

Grand Junction, CO -25.90

Kalispell, MT -25.32

Asheville, NC -24.58

Springfield, IL -24.51

Bakersfield, CA -24.41

Augusta, GA -24.05

Bloomington/Normal, IL -22.76

Eureka/Arcata, CA -22.68

Grand Forks, ND -22.68

Alexandria, LA -22.18

Allentown/Bethlehem/Easton, PA -21.43

Killeen, TX -21.43

Pullman, WA -21.32

Erie, PA -21.22

College Station/Bryan, TX -20.56

Bellingham, WA -20.26

Elmira/Corning, NY -18.78

Brownsville, TX -14.14

San Francisco, CA (Metropolitan Area) -10.83

Boston, MA (Metropolitan Area) -10.40

Los Angeles, CA (Metropolitan Area) -8.54

Chicago, IL -8.35

New York City, NY (Metropolitan Area) -8.22

Dallas/Fort Worth, TX -8.14

Seattle, WA -7.91

Phoenix, AZ -7.53

Raleigh/Durham, NC -6.84

Atlanta, GA (Metropolitan Area) -6.57

Washington, DC (Metropolitan Area) -6.47

Portland, OR -5.78

Minneapolis/St. Paul, MN -5.49

Denver, CO -5.42

Austin, TX -5.34

Philadelphia, PA -5.21

Kansas City, MO -5.08

Indianapolis, IN -4.78

San Diego, CA -4.41

Nashville, TN -4.37

St. Louis, MO -4.36

Salt Lake City, UT -4.05

Charlotte, NC -3.83

Tampa, FL (Metropolitan Area) -3.79

Houston, TX -3.20

Hartford, CT -3.20

Tulsa, OK -3.07

Las Vegas, NV -2.75

Pittsburgh, PA -2.73

El Paso, TX -2.39

Sacramento, CA -2.38

Charleston, SC -1.66

Orlando, FL -1.59

Detroit, MI -1.48

Online Appendix Table A.2 - City Fixed Effects for Cross-Route Analysis of Profit Margins (%)

City Annual City Fixed Effects (with respect to average)

Online Appendix Table A.2 - City Fixed Effects for Cross-Route Analysis of Profit Margins (%)

Miami, FL (Metropolitan Area) -1.48

San Antonio, TX -1.42

Boise, ID -1.36

Cleveland, OH (Metropolitan Area) -0.81

Spokane, WA -0.78

Tucson, AZ -0.74

Rochester, NY -0.62

Des Moines, IA -0.54

Columbus, OH -0.49

Helena, MT -0.18

Bozeman, MT -0.14

Omaha, NE -0.14

Jacksonville, FL -0.08

Madison, WI 0.28

Oklahoma City, OK 0.50

Greensboro/High Point, NC 0.61

Eugene, OR 0.76

Fayetteville, AR 0.89

Little Rock, AR 0.90

Fort Myers, FL 1.26

Palm Springs, CA 1.49

New Orleans, LA 1.65

Minot, ND 1.86

Jackson, WY 2.18

Medford, OR 2.25

Saginaw/Bay City/Midland, MI 2.62

Traverse City, MI 2.70

Birmingham, AL 2.81

Richmond, VA 2.87

Fayetteville, NC 2.98

Louisville, KY 2.99

Norfolk, VA (Metropolitan Area) 3.01

Cedar Rapids/Iowa City, IA 3.05

Mission/McAllen/Edinburg, TX 3.12

Huntsville, AL 3.19

Buffalo, NY 3.25

Memphis, TN 3.54

Bangor, ME 3.58

Dayton, OH 3.58

Portland, ME 3.92

Burlington, VT 4.02

Jackson/Vicksburg, MS 4.12

Lubbock, TX 4.13

Cincinnati, OH 4.52

Midland/Odessa, TX 4.54

Philipsburg/State College, PA 4.58

Chattanooga, TN 4.76

Billings, MT 4.88

Salinas/Monterey, CA 5.03

Santa Barbara, CA 5.33

Missoula, MT 5.47

Reno, NV 5.50

Milwaukee, WI 5.56

Knoxville, TN 5.79

Myrtle Beach, SC 5.83

Fort Smith, AR 6.11

Sioux Falls, SD 6.37

Valparaiso, FL 6.39

Grand Rapids, MI 6.53

Corpus Christi, TX 6.57

Syracuse, NY 6.57

Fresno, CA 6.62

Harlingen/San Benito, TX 6.64

Harrisburg, PA 6.67

Bristol/Johnson City/Kingsport, TN 6.69

Peoria, IL 6.72

Quad Cities, IL (Metropolitan Area) 6.83

City Annual City Fixed Effects (with respect to average)

Online Appendix Table A.2 - City Fixed Effects for Cross-Route Analysis of Profit Margins (%)

Idaho Falls, ID 6.85

Lewiston, ID 6.96

Shreveport, LA 6.97

Green Bay, WI 7.02

Springfield, MO 7.06

Charleston/Dunbar, WV 7.11

Mobile, AL 7.21

Roanoke, VA 7.44

Baton Rouge, LA 8.17

Evansville, IN 8.59

La Crosse, WI 8.84

Monroe, LA 8.84

Montgomery, AL 8.91

Savannah, GA 9.09

Columbia, SC 9.22

Colorado Springs, CO 9.42

Kalamazoo, MI 9.94

Yakima, WA 10.19

Lansing, MI 10.65

Fort Wayne, IN 11.05

Rapid City, SD 11.38

Rochester, MN 11.50

Greenville/Spartanburg, SC 11.55

Champaign/Urbana, IL 11.62

South Bend, IN 12.12

Fargo, ND 12.19

Paso Robles/San Luis Obispo, CA 12.77

Melbourne, FL 13.84

Duluth, MN 13.97

Gulfport/Biloxi, MS 14.25

Flint, MI 14.40

Lafayette, LA 14.48

Pensacola, FL 14.71

Sarasota/Bradenton, FL 14.75

Pasco/Kennewick/Richland, WA 14.78

West Palm Beach/Palm Beach, FL 15.55

Lincoln, NE 16.04

Lexington, KY 16.23

Daytona Beach, FL 17.27

Wichita, KS 17.83

Charlottesville, VA 18.28

Tallahassee, FL 18.39

Wilmington, NC 18.44

San Angelo, TX 18.48

Wenatchee, WA 18.75

Scranton/Wilkes-Barre, PA 19.18

Walla Walla, WA 19.55

Gainesville, FL 19.63

Wausau/Mosinee/Stevens Point, WI 20.27

Sun Valley/Hailey/Ketchum, ID 20.87

New Bern/Morehead/Beaufort, NC 21.67

Key West, FL 22.34

Laredo, TX 22.53

Toledo, OH 23.33

Panama City, FL 24.87

Redding, CA 32.24

Notes: Numbers are in percentage terms. The results represent the estimates based on profit margins obtained one

year after the shock. The cross-route regression used to obtain these results has the dependent variable of profit

margins (%), and the independent variables of city fixed effects only. The regression has an R-squared value of 0.402.