usairways expects 1st q loss.

[JS]

US can't raise fares or they will have fewer passengers and bring in less revenue in total.

If US were a decent carrier, people would be willing to pay more, but that is obviously not the case.

 

[UWCactus]

Change is on the horizon.

 

[US1YFARE]

Change is on the horizon.

that's it...no details?

 

[Whatnow?]

Change is on the horizon.

You're absolutely right....Change is on the horizon, again and again and again till they can do it right or until we go out of business!

 

[N965VJ]

Heh, more hints of change.

I’m reminded of the ancient curse; may you live in interesting times.

 

[beachboy]

UW: Change like manboobs in mock turtles or change like livery?

 

[US1YFARE]

Maybe it is a secret code.

change is on the horizon...hmmmm....Horizon Air....which is associated with Alaska Air and everyone thinks AA will merge with Alaska....and people refer to AA as Naazi Air...and the Nazi's were German and LH is in the Star Alliance and so is UA and UA uses glassware in FC....and US is getting rid of its glassware...hmmm...this is tough...oh, ok, so US is going to suck even more than it does now because Tempe has no clue how to run an airline. There, I figured it out.

 

[SpinDoc]

Change is on the horizon.

I think what is being inferred here, is that industry consolidation will eventually reduce capacity enough that ALL carriers will be able to increase fares to offset the ridiculous rise in fuel prices. Since the FTC forbids airlines to raise prices in lock step (collusion), most carriers are afraid to raise fares independently, fearing a loss of market share. If capacity is reduced in a meaningful way, then none of the carriers will lose significant market share if they put a fare increase in play because they will all follow along without fear of market share loss.

Petroleum prices are increasing due mainly to the devaluation of the US Dollar against other currencies. This creates inflation, and as a hedge against inflation, many large mutual funds and wealthy private investors are buying oil futures contracts on the NYMEX and driving the cost of oil higher, essentially betting that their investment will offset additional US Dollar devaluations in the future. Airlines do the same thing when they hedge fuel. It's a crazy pyramid scheme that will eventually topple, just as the mortgage and bond industries have done in the recent past. The bubble will burst when the U.S. and World economies hit a full blown recession in the next 18 months. At that point, the Saudis and Venezualens will be giving their oil away and the market will collapse.

 

[gaucho99]

Well it just seems simple to me...RAISE THE FARES! Everything else has gone up as a result of fuel prices. Why are airfares the only thing going down? Even a cup of coffee at Starbucks has increased in price by almost 40 cents in the past three years because of fuel costs associated with delivering milk, supplies, etc. But rather than raise the fares, God forbid, they will continue to loose money and squeze more out of the employees. It amazes me how if the airlines try to raise prices people throw a fit, but no one has picketed the gas pumps lately....

You mean raise fares in the Bos-Phl market from $1,000 - $1,200?

 

[ual777fan]

You mean raise fares in the Bos-Phl market from $1,000 - $1,200?

Well obviously you do it in a slightly more intelligent fashion (or I would hope). Tack the fuel surcharge onto the lower, restricted, fare classes like O, S, Q, L, M, etc. This would improve revenue and wouldn't burden the Y and B fares with yet another expense.

 

[etops1]

Change is on the horizon.

isn't that delta's new thing "change"?
not to change the subject but just a funny continental ad i saw. a true jab at delta. it sais. " some airlnies out there talk about change .to us,change is something you give passengers when you charge them for meals on flights"


i thought that was funny.
anyway back to the subject "losing money"

 

[SolidCactus]

One thing that US really has going for it, is the routes up and down the northeast, especially from PHL. I'll be honest... About six months ago, I finally got so mad at US Airways, I swore I'd never fly it again. I really did stay away for about six months, but every flight I took was more inconvenient (connections, locations and price wise) that I came back. There is really so much originating traffic from the greater PHL area, and we don't have a lot of other options... Drive to EWR and pay a fortune for Continental?

 

[Dog Wonder]

One thing that US really has going for it, is the routes up and down the northeast, especially from PHL. I'll be honest... About six months ago, I finally got so mad at US Airways, I swore I'd never fly it again. ?

Swap imaginary convenience, for real inconvenience.

Do I want to get there when I planned or trade it for when they didn't plan?

Tough choice these days.

 

[SolidCactus]

Swap imaginary convenience, for real inconvenience.

Do I want to get there when I planned or trade it for when they didn't plan?

Tough choice these days.

Very true, and that is one of the main reasons I left, but I've had pretty good luck in December, January and February with on time flights - so whatever changes US is making in PHL, they really are starting to work... I just hope that they keep working...

 

[Dog Wonder]

I hope your luck continues.

To keep on topic. The projected loss is more than chasing customers away and the cost of fuel. It is a result about caring more about numbers than people. Both customers and employees are victims of management that cannot see caring about profit is more important than caring about people.

Take care of people and the numbers will take care of themselves.