In 2015, SunDog airlines replaced the turboprop with regional jets for distances of more than 300 miles.
The company reported increase in the sales (10 to 30% more tickets sold) but it also reported lower profits for each of the 4 quarters in 2015 compared to the same quarters in the previous 5 years.
The chief executive blames the high operating cost as the cause for the reduced profits.
We need to weaken the conclusion drawn by the chief executive
A - All of the other airlines that operate regional jets reported higher profits in 2015 compared to previous years - there could be multiple factors for the same (the other airlines may have reduced other operating costs, achieved higher revenue, etc) and this does not directly challenge the conclusion drawn by the chief executive. - Incorrect
B - Passengers feedback on Jets vs Turboprop makes no difference to the conclusion drawn by the Chief Executive. We are concerned with the reduced profits and not how customers perceived it. - Irrelevant
C - If it is able to reduce the total number of flights, the operating cost should have been lower thereby increasing the profit if not maintaining it. We do not get a reason as to why the company reported lower profits than previous five years in each of the quarter - Incorrect.
D - Similar to C, we do get a reason as to why the company reported lower profits - Incorrect
E - This gives us an alternative. If 35% of the overall sales were promotional fares that it sold to regional jets passengers, makes sense why the operating profits would come down. So even though, the company sold 10-30% more fares, the revenue per fare would have come down, leading to lower revenues and ultimately lower profits. - Correct.