How can you not...

[ABXbooger]

I was recently on NWA, Delta, and AA. Good service, nice people, etc. (what's the average age of the FA's now?)
Anyway, I have a question for you...how can the majors not be making money?

NWA-5 flights-all full
DAL-2 coast to coast legs-all full
AA-4 flights all full

and the terminals are like amusement parks...you can't move!

I shake my head and wonder...must be the new math.

 

[bafanguy]

They won't/can't charge enough per ticket. Full airplanes mean nothing when you're selling the product below the cost to produce it.

 

[ABXbooger]

that is what I keep hearing, but a 757 holds how many? about 150-170? at 400 bucks per (I'm averaging, thats about the lowest fare I saw for that flight) that is 6000-8000 plus any miscellaneous junk (freight, etc) What are the DOC's on a 757? And I know there where some people that paid over a thousand bucks to catch that flight...

 

[wms]

The problem isn't unique to aviation. Many industries report good volume but a lack of pricing power. This should probably recover with employment and consumer confidence. The other variable that adds to the lack of pricing power is over-capacity.

 

[MooseTrax]

Fuel Prices

Don't forget that fuel costs are at a 10 year high now and unless planned for I'm sure it is a big part of the would be profits.

 

[AA717driver]

Did you taxi by the "Jet base" in ATL or the overhaul base in TUL?

The majors have so much infrastructure that the LCC's don't have BUT they still have to charge competitive prices.

Carty told APA before he got chased out that AA was planning on getting a 30% revenue premium over the LCC's because of their network and Int'l. If they don't get that premium, they need to cut some more.

Plus add in the cash needed to service the tens of billions in debt racked up overs the past three years...

They will have to sell a lot of tickets.TC

 

[Jeff Helgeson]

Yield!

It's all about yield. The number of seats filled is irrelavent.