Q: Why are our costs going up in the third and fourth quarter? Is it because of the new pilot contract?
Ben Minicucci
A: That's part of the reason but, most importantly, we're really happy our pilots ratified a five-year deal. While it includes a 10.8 percent increase, as of April 1, our pilot wages are now only slightly higher than where they were eight years ago.
I am also very proud of the fact that our pilots lead the industry in productivity. Having a long-term agreement allows us to focus on running a safe, on-time operation, taking care of our customers and beating the competition without the distraction of labor negotiations.
It's notable that employee productivity improved by 5.5 percent this quarter, and 6.7 percent in June, and our overall cost performance continues to be very good in nearly every operating division. This reflects the commitment by all of our people to achieving lower costs.
? Ben Minicucci, chief operating officer
I'd say they played us like a fiddle!!!!!