- Feb 17, 2005
- Total Time
Analyst estimate for Airtran 1st quarter = Breakeven-More importantly-look who DID make money. Either of those two could be knocking on DAL's door in ATL before long....
Analyst estimate for Airtran 1st quarter = Breakeven
10 analysts predicting Airtran's 2nd quarter to be the best ever with a net profit over $50 mil. Full year 2009 estimate average for the 10 analysts is for Airtran's best net profit ever of $120 mil.
Airtran's 2008 total fuel bill was $1.35 billion (including $150 million one time loss to unwind future hedges). Airtran's 2009 fuel bill (including the 4% ASM reduction) and the $1.80 predicted Jet A price would come in around $650 million. That is a $700 million dollar drop from the 2008 fuel bill. Even if our total revenue drops 10% (or about $250 million), we are still in much better shape this year.
Didn't know that Allegiant's business model included coming into the largest legacy hub (Delta just under 1,000 departures a day counting regionals) and largest LCC hub (240 departures a day) in the world.
If Southwest was going to make their move, they would have had alot easier time in 2008 when Airtran and Delta were paying $2/gallon more for Jet A than Southwest. If Southwest wants to move into ATL now, I am sure they would receive a pretty good competitive response from both Airtran and Delta.
Sucks that you didn't get hired at DL, crj567. Do you have to whine in every thread about it?
If you didn't notice, we're projected to have performed better than all the other legacies....with an economy in the crapper.
INTL routes seem to be doing fine.
I wouldnt be so quick to assume Allegiant would jump into ATL... they are a non-competing airline (much like DL was many years ago when they were printing their own money pretty much....before they got forced into the competition). I wouldn't doubt it if WN jumped into ATL soon anyways.
That's good you aren't applying here... sounds like you would blow to fly with on a 4-day...even worse on a 10-day!
-Gotta be encouraging for DAL and all their "inspired" moey-making INTL routes.....
-More importantly-look who DID make money. Either of those two could be knocking on DAL's door in ATL before long....
-Hmmm..... "inspired" indeed-Steenland and Andersen rock!
-Got that fry hat ready, Gen? I'll show you how to get them nice and golden-brown!
It is very telling who IS making money. It is the airlines that are not throwing money supporting money losing RJ operations. It is what we have been trying to explain to our enlightened mgmt for years. RJs are money burners period. If the mainline has to buy the a/c, guarantee fuel price and guarntee a return of 10%, do all the advertising, etc. There is absolutly no reason some cities can support 10 50 seat flights per day to competing hubs. These cities should have 4-5 flights per day, with at least 3 in the 100-125 seat range and MAYBE and rj or 2 to fill in the off peak times. There seems to be a trend of getting out of contracts, and upgauging a/c, so hopefully in a few years you won't see any, or very few 50 seat money pits. The key will be not to allow too many 70 seaters outside of mainline.
One quarter of losses related to failing INTL routes would account for all the money you claim rjs burn up over a decade.....
-Which do you really think loses more money? An rj to DHN with 23 people, or a 767 tooling across the planet with 70 people?
-It is truly amazing how many of you can't see the obvious truth-maybe I wouldn't want to see it either.
A wise man once said you can never convince a man of the truth if his job depends on a lie.
You both are losing money! RJs and Wide bodies and pretty soon Narrow bodies. Delta and the legacies alike can not fight market realities. These market realities will slowly kill and shrink these companies over the next two decades.