We got SCREWED!!!

[Crash Pad]

Airlines are reporting earnings. Here is what I have learned.

1. You can charge a lot of money for a ticket and people will still fly.

Just so everyone is clear. This summer is seeing high loads despite that fact that tickets, surcharges, fees, taxes, etc. are higher than they have ever been.

Note the tickets are also being sold when the economy is in the dumps.

Why didn't they charge what they are charging this summer all along? Every carrier would have made billions!

 

[Secret Squirrel]

People are still in denial. People have been living off the equity of their homes and are only now realizing they have no equity in their homes or are under water. They are so in debt they are starting to steal money from their retirement funds at alarming rates. At some point the whole house of cards will collapse if gas prices, the housing market, and the credit market continue to crumble. Remember the add with the guys talking about all the great things he owns, his beautiful house, his golf club membership, his nice cars.... " and I am in debt up to my eyeballs!" At some point some people will not stop flying, the majority will. When their credit cards are full and the bank stops giving them lines of credit. Then everybody will compete for the remaining business traveler because anybody who has any money will be flying netjets.

 

[waveflyer]

hotels should have taught us that-- they will pay the same price for 1 night's stay as they will for the whole round trip--

you got screwed b/c you thought your 50% paycut and pension loss would fix your airlines problems... all you did was screw pilots

 

[~~~^~~~]

What bugs me is the devaluation of our currency. Those who saved and have investments up to our eyeballs are watching our real net worth plummet with the dollar. In real terms, the $120,000 loss in my holdings (and I beat Buffet this year on a percentage basis) is a real $300,000 loss when it comes to retirement.

I literally can't put money in as fast as it is lost in the market.

As such, I wish I had not saved. Losing a quarter of a million in value is a disincentive. Meanwhile my hocked-to-the-hilt neighbor was bragging that he got a $100,000 write down from his mortgage holder.

Who's looking better? The government is again punishing the responsible members of society. My neighbor (with the boats, SUV, 60inch plasma) is looking smarter than me with a paid off house.

Even more, best I can tell, the $100,000 gift was tax free where I would have had to pay about $40,000.00 on that cash if I took it out of my business.

If it wasn't for the commute, I'd move out of the US, I'm about fed up.

 

[labatt]

Fins,

Assuming you aren't about to retire you are in great shape. It sounds like you invest on a regular basis. Just think of all the great buys you are getting. Looking at all of these PE's, as low as they currently are, is a beautiful thing. Gotta love dollar cost averaging.


This chart should give you a little hope.

http://stockcharts.com/charts/historical/djia1900.html

 

[pianoman]

Dollar cost averaging. Yes the stock you're buying has gone down in value, but now you are buying more shares per dollar. When it goes back up and stabilizes, you'll be back on course.

This is why they recommend people with a long way to retirement take more risks than those too close to ride out the wave.

 

[jmreii]

Airlines are reporting earnings. Here is what I have learned.

1. You can charge a lot of money for a ticket and people will still fly.

Just so everyone is clear. This summer is seeing high loads despite that fact that tickets, surcharges, fees, taxes, etc. are higher than they have ever been.

Note the tickets are also being sold when the economy is in the dumps.

Why didn't they charge what they are charging this summer all along? Every carrier would have made billions!

1. some people will still fly, but not everybody will.
2. I guess the airlines only make money doing the summer months, what about the other three seasons?

 

[FLYLOW22]

Then everybody will compete for the remaining business traveler because anybody who has any money will be flying NetJets.

Roger THAT!

 

[Hamburger]

Airlines are reporting earnings. Here is what I have learned.

1. You can charge a lot of money for a ticket and people will still fly.

Just so everyone is clear. This summer is seeing high loads despite that fact that tickets, surcharges, fees, taxes, etc. are higher than they have ever been.

Note the tickets are also being sold when the economy is in the dumps.

Why didn't they charge what they are charging this summer all along? Every carrier would have made billions!

Also remember how much capacity has been lost over the summer. Two carriers serving Hawaii no longer exist.
That being said, don't let them sell you the "pay cuts will save our airline" line.

 

[Crash Pad]

1. some people will still fly, but not everybody will.
2. I guess the airlines only make money doing the summer months, what about the other three seasons?

Missing the point. I don't want everyone to fly. If the airlines had raised fares and cut capacity five years ago... Everyone would have made a ton of money.

What this summer proved is that Joe consumer needs our service. Stop selling the $50 fare because the plane is going anyway.

 

[pilotyip]

no they are not

Airlines are reporting earnings. Here is what I have learned.

1. You can charge a lot of money for a ticket and people will still fly.

Yes you can charge more but you have fewer riders, that is why we see all the cut backs, raise the prices more, consolidate more flights to ensure high load factors, and what do you get smaller airlines with fewer pilots. Raise them enought and a new airline will start up and under cut the higher priced airlines Due in part to low wages of first year employees.

 

[relief tube]

Airlines are reporting earnings. Here is what I have learned....... This summer is seeing high loads despite that fact that tickets, surcharges, fees, taxes, etc. are higher than they have ever been.

isn't it b/c capacity is down?

besides, Jetblue and Airtran wouldn't match all the increases anyway. Yay for them.