Spirit and fuel hedging

[Mike man]

70 bags at $20 each is only $1400...let's say 3500 pounds from FLL-MCO, that is 522 pounds of Jet A in FLL they charge 3.59 a gallon $1873.98 for gas...this does not cover the gas.

Let's use FLL-PAP always lots of bags...12,000 pounds of Jet A...1791 gallons of Jet A at 3.59 a gallon...$6429.85 for gas at $20 per bag you need 320 bags to cover the fuel.

 

[Joblu]

70 bags at $20 each is only $1400...let's say 3500 pounds from FLL-MCO, that is 522 pounds of Jet A in FLL they charge 3.59 a gallon $1873.98 for gas...this does not cover the gas.

Let's use FLL-PAP always lots of bags...12,000 pounds of Jet A...1791 gallons of Jet A at 3.59 a gallon...$6429.85 for gas at $20 per bag you need 320 bags to cover the fuel.

Very true because your fares at 9.00 bucks will drag you into the negative even further. Maybe that is what your 242 furloughs will cover. Freakin idiots! (mgmt that is)

 

[kwick]

Well J.O., better 9$ fares as a marketing tool than keeping passengers stranded on jets for hours on end. Hope those displacements, if they happen , don't end up being to a bunch of crappy RJ's like Jet Blows. If there ever was a merger or buyout guess where you will end up on the seniority list with no union. C ya!

 

[Beetle007]

70 bags at $20 each is only $1400...let's say 3500 pounds from FLL-MCO, that is 522 pounds of Jet A in FLL they charge 3.59 a gallon $1873.98 for gas...this does not cover the gas.

Why would we expect bags to cover the cost of gas?

 

[Joblu]

Well J.O., better 9$ fares as a marketing tool than keeping passengers stranded on jets for hours on end. Hope those displacements, if they happen , don't end up being to a bunch of crappy RJ's like Jet Blows. If there ever was a merger or buyout guess where you will end up on the seniority list with no union. C ya!

First off jerkoff, it was a joke. Second, marketing strategies such as idiotic 9 dollar fares are costing 242 possible furloughs. Our valentine's day setback was not a marketing strategy you tool! The rest does not even warrant an answer.

 

[Mike man]

Beetle007 the bag math was in response to...

Seriously, do ya'll think they are that dumb not to raise ticket prices if we are losing money. Multiply the bag count times 20 bucks a bag. Most legs the bags just about cover the fuel burn. Hope some of ya'll don't get drug tested, not sure it will go well. Your on crack if you think they are not making money. Don't be surprised if all of a sudden were taking delieveries of 15+ plans next yr.

posted by critterair2

 

[Beetle007]

Sorry Mike. I now understand your point.

 

[critterair2]

Mike, I do agree with the numbers that you posted. However, I don't agree with the fuel price. How much we are hedged at what price, none of us really know. I think we can all agree that with the amount of facts that we have been presented from the higher ups, the fuel prices in the paperwork are prob. not what we are paying. I THINK, everyone see that, MY OPINION, we are paying a fair amount lower /gallon. I've been wrong many times in my life, very well could be now. The main point of my last post is I cannot believe if we were blowing through the last dollars that NK has, then mgmt would keep up with the 9 dollar fares. There is alot that we complain about towards mgmt but, they are business people, THEY ARE SMARTER THAN THAT.
JBLOW, dude don't get pissed at us for smokin you guys out of FLL, don't be surprised if we end up on the same seniority list at some point. Who's buying who, we'll see......lots of $$ in TPG. Although business models don't make sense, routes do. Folks this is the time for all pilots on all list to stick together and look out for each other. ITS JUST A JOB, but it does pay the bills. When its all over its what is at home that counts.

 

[Mike man]

Even at half price...1.79 a gallon that is still 160 bags checked at $20 just to cover the fuel.
1.79 x 1791 = 3205 / 20 = 160

It is hard to imagine that Spirit would be immune to the problems of the market today. Like I have said before, if you treat people badly enough for long enough they will stop flying Spirit and buy tickets on other airlines.

 

[Wino]

and 50 percent off fuel would be making the assumption that your hedging is better than southwests!


Usually, really cheap fares like the 9 dollar one are not signs of good managment, but extreme desperation.

Remember, the closer and closer Northwest got to bankruptcy, a few years back, the LESS likely they were to go along with fare increases. When you get real desperate you will take any cash for a seat that you have already committed to fly that is still empty. I would look at the 9 dollar fare as real frightening, not a sign of good management.

Fare increases are going through right now because none of the majors are actually on the brink and have enough cash to ride out short term effects of a fare increase (short term drop in loads for a longer time rise in yield) Fare sales scream "We need cash now!"


Stay away from the coolaide criterair, it rots your brain.

Cheers
Wino