Profit Rumors for 2006

[nycbusdriver]

I've heard from several sources (none of them named Chip, although they might not be any more reliable, either) that USAirways may be profitable in 2006. That would be great news since it means we may have finally turned the ever-elusive corner.

Last week while trying to navigate the CLT concourses (on a Wednesday and then again on Saturday, no less) I found it amazing just how many people were riding this airline. It looked like Thanksgiving week. I mentioned to my fellow crew member that we could probably be profitable if we just raised fares $5 and that I doubted many of these thousands of travelers would have cancelled their trips over that meager amount.

Then SWA comes along and virtually gives us (and the rest of the industry) the very fare increase I pondered. How nice of them.

 

[FWAAA]

I mentioned to my fellow crew member that we could probably be profitable if we just raised fares $5 and that I doubted many of these thousands of travelers would have cancelled their trips over that meager amount.

Then SWA comes along and virtually gives us (and the rest of the industry) the very fare increase I pondered. How nice of them.

Announced price increases are one thing; additional revenue at the end of the quarter/end of the year is quite another. Airlines are currently raising their "ask" but it remains to be seen whether the pax raise their "bid" for those seats. Unless substantial capacity is removed from the domestic network, fares will end up wherever pax are willing to pay, not what the airlines ask when they announce fare hikes with grand fanfare.

US profitable if fares were raised only another $5 or so? Try more like $25 increases. That would equal profits at US. Good luck.

 

[nycbusdriver]

Announced price increases are one thing; additional revenue at the end of the quarter/end of the year is quite another. Airlines are currently raising their "ask" but it remains to be seen whether the pax raise their "bid" for those seats. Unless substantial capacity is removed from the domestic network, fares will end up wherever pax are willing to pay, not what the airlines ask when they announce fare hikes with grand fanfare.

US profitable if fares were raised only another $5 or so? Try more like $25 increases. That would equal profits at US. Good luck.

I'll match my pure conjecture against your pure conjecture any time.

 

[FWAAA]

I'll match my pure conjecture against your pure conjecture any time.

I reject your pure conjecture and substitute my own.