Is there an optimum frequency level to strive for to make the most profit?
On routes where there is no competition and the daily PAX demand is high, 2000, 2200, etc., like in the USA, When more seats are added to the market, the ticket prices, the Daily Profit and the DOP are affected in various ways. I was experimenting with one route. I initially started with 7x and then I added another 7x for a total of 14x and the ticket prices dropped and the Daily Profit went up. The DOP also went up. I then added another 7x for a total of 21x and the ticket prices dropped again and this time the Daily Profit also dropped from the previous level. The DOP also dropped a little. Of course I adjusted the ticket prices to keep the LF at 100%.
When I first started playing this game my thinking was that if the demand is there, keep adding planes to fill the demand (with no competition) and make a huge profit.
I guess what I am asking, is there a peak in frequency levels that is reached before the Daily
Profit and the DOP starts to drop off even before you can fill all of the demand? I hope I made some sense in what I'm asking. Is my thinking right or wrong?