I have just been doing business on AS for couple of days now. So... this may be a question that was already asked/answered before:
I opened up some domestic flights, and some international flights. Using 737 classic. Domestic flights are filling up pretty nicely. But international flights e.g. Caracas, Quito, etc. have very low bookings. For example, a flight to Caracas has a booking of only 5!!! passengers (whereas competing airlines are fully booked). I have offered a default system price (which is lower than competitors) but the flight is simply not filling up. Quito is somewhat better and is at 33%, 2 days before departure, But Domestics are now at 80-100%, 2 days before departure at 100% and 3 days before departure at 80% average. On both domestic and International flights, I am offering default pricing, only cargo I have bumped up a bit to reflect others' rate (cargo is filling fine at this higher rate).
1) Why aren't my international flights filling up?
2) Should I cancel my international flights if a day before departure the financial prognosis says I will lose money on the flight?
Is there something like a "route reputation" that builds over time, by flying the route? What I mean is whether it's somehow worth flying the route even if losing money (for some bigger reason/objective) or it's better to just cancel those flights?
I selected international routes based on actual real-life demand and it can be seen that the demand is there, because competitors' flighst are fully booked, at even much higher rate than default rate.
Thank you for your advise.