Virgin America QOL...this time lets keep it about QOL

[bri5150]

Also, he says that passenger count is down 4% because our fares are higher. Well, if our fares are higher, aren't we making more money even with the 4% decrease in traffic (depending on increase of course)?

 

[Andy]

Also, he says that passenger count is down 4% because our fares are higher. Well, if our fares are higher, aren't we making more money even with the 4% decrease in traffic (depending on increase of course)?

Passenger count wasn't down in the latest (May) traffic release. VX was +4.8% year over year in spite of a 1% ASM decrease.
http://www.virginamerica.com/press-release/2013/virgin-america-may-2013-operational-results.html

If you guys are continuing to emphasize a yield management approach (vs emphasizing load factors), there's a reasonable chance that VX will be able to get an IPO out the door. At the very least, VX should be able to be net profitable in 2013 and lower some debt. The current debt and insider equity levels are a huge impediment to an IPO.
Frankly, VX should be charging a premium for their seats vs other airlines, as they offer a higher service level.