Two of 2014 most Expensive are now the Cheapest

WorldTraveler

Corn Field
Dec 5, 2003
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and yet DL has had the best RASM performance of any airline that has reported. and based on guidance that will be true for AA as well.

must be all about revenue management.
 

WorldTraveler

Corn Field
Dec 5, 2003
21,710
10,721
nowhere does it say that DL's yields are down... there are just low cost carriers competing in the market.

DL just does a better job of competing with low cost carriers.

Notably, UA said today that its revenue weakness was greatest at ORD, DFW, and IAH; ORD and DFW match what DL said. UA also said that Brazil weakness will cause them to reduce capacity. DL reported nearly flat Latin RASM while UA was down double digit, its worst region.

AA reports tomorrow but it is certain that their weak RASM will be attributable to a combination of Brazil, ORD, DFW, IAH, and Florida.

there is a big difference between fares being down in a region and a specific carrier seeing lower fares from that city.
 
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Hope777

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Aug 19, 2002
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So the article is WRONG? fares have not dropped in ATL or CVG?   Obviously CVG no longer matters to DL.  G4 announced today to crew base in CVG, but fares are down in ATL.  Just as AA will see weakness in the DFW market due to WN at DAL.   But Hey.... WT, u know so much more then people that do this for a living on Wall Street.  THANK YOU for the insider information
 
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Glenn Quagmire

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Apr 30, 2012
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Hope777 said:
So the article is WRONG? fares have not dropped in ATL or CVG?   Obviously CVG no longer matters to DL.  G4 announced today to crew base in CVG, but fares are down in ATL.  Just as AA will see weakness in the DFW market due to WN at DAL.   But Hey.... WT, u know so much more then people that do this for a living on Wall Street.  THANK YOU for the insider information
Please put it on ignore. Eventually it will stay under the bridge.
 
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WorldTraveler

Corn Field
Dec 5, 2003
21,710
10,721
So the article is WRONG? fares have not dropped in ATL or CVG?   Obviously CVG no longer matters to DL.  G4 announced today to crew base in CVG, but fares are down in ATL.  Just as AA will see weakness in the DFW market due to WN at DAL.   But Hey.... WT, u know so much more then people that do this for a living on Wall Street.  THANK YOU for the insider information
read again what I wrote.

fares are down in CVG but that doesn't mean that they are down for DL who has decided to give up some of the market to ULCCs. I have noted that before.

ATL fares may be down because of the growth of ULCCs but DL has cited yield strength in ATL for years - because Dl is able to revenue manage its inventory well.

Feel free to ignore what you want but the truth is quite simply that the article does not try to equate what is going on with fares in a particular city with a particular airline from that city.

However, when DL and UA have both noted that ORD and DFW are common cities for yield softness, the chances are high that it is true for other airlines as well.

ATL and CVG are seeing lower fares because of a growth in low fare competition but it is not affecting DL's yields. ULCCs have added a lot of capacity to CVG relative to the size of the market while most of the capacity that WN has cut from ATL has been replaced by ULCCs. That doesn't mean that DL or WN have seen yields decline from ATL; in fact, both carriers are being more selective about what traffic they take.

DFW and ORD have been specifically mentioned by two airlines in their earnings calls and will likely be mentioned by AA tomorrow. Fares are very likely down ACROSS THE BOARD in both of these cities even if the total percent might be less. Given that WN's RASM loss is higher than DL's even though WN has no longhaul international operations to Brazil, Europe, or Asia where the legacy carriers are seeing their greatest yield softness, it is clear that WN is using low fuel prices to aggressively expand in key markets which it shares with network carriers. Given that is exactly the same strategy they used when they had fuel hedge benefits compared to the legacy carriers, it isn't surprising they are doing the same thing again.

read what is written, not what you want it to say.
 

FrugalFlyerv2.0

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Oct 29, 2003
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WorldTraveler said:
... ... ...  DL who has decided to give up some of the market to ULCCs. I have noted that before.
 
Yeah, DL is the benevolent dictator ... ... ...
 
sacha-baron-cohen-the-dictator.jpg
 

WorldTraveler

Corn Field
Dec 5, 2003
21,710
10,721
it would appear that the report needs to be updated based on the current quarterly results.

although B6 has yet to report, SEA, ORD, DFW/DAL, and IAH have to top the list of the largest markets with fare declines based on yields from carriers.