Originally Posted by
Laxrox43
From a financial standpoint, I don't understand why Delta feels it is profitable to eliminate all turboprop flying to their EAS destinations. With oil prices at an all time high, it just doesn't make sense to me. Plus, flying turboprops on short hops into small airfields (as most EAS routes are) seems more cost-effective to me. I've never been the "bean counter" type, so would someone with hard facts enlighten me please?
Thanks,
Lax
EAS contracts are bid on at a fixed rate. As fuel prices rise, margins shrink. When oil prices were pretty stable, airlines could bid these routes and expect to have a relatively stable margin. Now with the rampant oil price volatility, EAS routes can swing from a nice profit to a huge loss in a very short period of time.