Iair 4th Qtr Breakeven Lf 106%

[enilria]

Link to Press Release

They have $185m in expenses in the 4th quarter, but they only took in $94 million in revenue. If you do the math based upon their 53% LF, they needed 106% LF or so to breakeven.

So not only are they empty they need to increase the fare AND the traffic by 50% EACH to breakeven. Good luck...

 

[CaptianBoomer]

I use Indy Air to commute....which last year and this year up till January was a piece of cake.

However, as of late I have to avoid using them. Because their flights are filling up.

I think a large miscalculation was made in regards to having their flights listed only on their website. Now that they are using orbitz and the like, you see the result.

They aren't always the cheapest either. Lately, they are more expensive than both U and DAL.

Anyway, I think there is enough time for them to turn it around. If fuel doesn't get too much higher and the fare increases stick, they have a fighting chance.

BTW to all the FLYI employees. Thanks for the rides.

Boomer

 

[whlinder]

I think a large miscalculation was made in regards to having their flights listed only on their website.

[post="251136"][/post]​

This was certainly a missed opportunity on FlyI's part, as once they saw their awful initial loads they continued to insist their plan would work instead of getting out in the GDS. If they had tried to get out in GDS back in September instead of in December I think they would have lost a lot less money.

Their other miscalculation that seemed to be pretty obvious last year that took them until this year to correct was their decision to run each and every RJ they had through IAD. When they were part of UA Express they had a split operation between IAD and ORD, with more flights a day out of ORD IIRC. Then they decided to take all those planes and run them all through IAD. With UA replacing FlyI's flying, it was essentially adding the capacity of 80+ RJs to the IAD market in the span of 6 months. Even with reduced fares, to expect the planes to be full was ludicrous. Purging some of their excess capacity will definitely help them out, but I still think they are running too much connecting traffic and too low of fares to make their RASM anything close to matching their CASM. West coast flights won't fix that either. CASM was 17.8 in the 4th Q and only 8.7 RASM. They are running out of time to turn themselves around.

 

[coolflyingfool]

I think that FLYI is finally catching on. They are now in a GDS and they have unloaded some of the planes and cut capacity on unneeded routes along with expanding to the West Coast for new traffic. By no means are they anywhere close to getting out of the woods yet, but they are moving in the right direction. Just my thoughts........

 

[funguy2]

FlyI's three biggest problem were these:

1. Too many airplanes + too few markets = too many frequencies to each market

7 roundtrips a day on IAD-LAN? Thats about 4 too many, especially for an unproven market...

2. CRJ's cannot compete with mainline equipment, no matter how many flights you fly (think of their schedules to ORD, BOS, JFK, etc)

3. Using only your own website for reservations only works if you have a very recognizable brand. FlyI doesn't have this yet.

I think FlyI's actions of late are definitely in the right direction. All of their decisions support rectifying the problems above... However, the East Coast is still a battleground, and there is still too much capacity. I believe FlyI has at least a fighting chance, but a lot of things have to go their way for ultimate success...

 

[whlinder]

FlyI faces a cash crunch

NEW YORK, March 17 (Reuters) - Low-cost airline Independence Air, which is controlled by FLYi Inc. (FLYI.O: Quote, Profile, Research) , said in a regulatory filing that is under pressure to boost revenues and cut cuts to avoid a "liquidity crisis," and its shares fell 5.6 percent on Thursday.

Faced with fierce competition and record fuel prices, Independence Air has seen revenue "falling significantly below anticipated levels and the company expending cash at an unsustainable rate," the company said in the filing with the Securities and Exchange Commission made late on Wednesday.

Dulles, Virginia-based Independence said in the filing that it had pledged nearly all of its assets in a recently completed restructuring, risking a cash shortfall if passenger traffic remains weak and fuel costs remain at their current record high levels.