Lack of efficiency is costing the airlines dearly. The overcrowded skies have created a scenario in which it costs the airlines more in delays, cancellations, idle time, vouchers, etc., than what the airlines can afford at these fuel levels.
The reality is that a large percentage of the flying public is made up of people who truly cannot afford to fly at fare levels which would allow the airlines to sustain themselves.
If there is less demand due to higher fares, less people will fly, the skies will be less crowded, and the remaining flights will operate more efficiently, thereby costing less money overall per mile. Unfortunately, reduced demand will most certainly lead to furloughs, layoffs, and more early retirements, but saving 80% of the jobs is better than losing 100% of them if an airline goes under.
At the same time, US must overhaul their IT infrastructure. The current platform is an absolute joke. There are so many things which customers and employees SHOULD be able to do on the website/reservation system, but cannot. The loss of revenue/productivity due to this joke of an IT platform is costing US a ton of money in soft dollars. Fix the problems, and it will cost the company less overall.
At least it's a cyclical business, and hopefully the situation will improve in time, as people get used to the idea of paying more for less.
