Originally Posted by
DAL 88 Driver
Problem is that our MEC hasn't even gotten the memo yet!
Listening to them, you'd think not only is 9-11 over but that we've actually recovered a lot since then. And the company is never going to "get the memo" if our MEC continues to act and communicate like this. Here is but one very sad example:
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The January 1 pay rate increase represents an increase of roughly $75 million in value for the Delta pilots. It also marks somewhat of a milestone in that the New Year pay rates will be above those that were in place when Delta filed for bankruptcy protection in 2005." - Lee Moak, Chairman's Letter, September 23, 2010
Compare revenue per seat mile corrected for inflation over the last 12 years.
Airlines have taken the savings they have extracted and lowered ticket prices to compete with one another.
Originally Posted by LA Times, 9/11
As a result, the nation's 10 largest airlines combined lost an estimated $29 billion between 2001 and the first six months of 2011, according to Robert Herbst, an independent airline analyst.
Airline revenues fell so sharply that by 2005, four of the nation's five largest carriers — Delta Air Lines, Northwest Airlines, United Airlines and US Airways — filed for bankruptcy protection. This allowed some airlines to renegotiate contracts and costly pension plans, saving them billion of dollars. Still, most of the major national airlines continued to struggle with sluggish demand and rising expenses.
when you take inflation into account, flying is surprisingly less expensive. Booking an airline flight and searching for the lowest fare? You might be surprised to learn that in many cases, ticket prices have actually not kept pace with inflation. Air travel analyst Terry Trippler conducted a random survey of schedules and airfares comparing ticket prices of today with those from 25 years ago for 27 different cities. When 1982 prices are adjusted for inflation, Trippler found that today's prices are actually lower. In 1982 there were three roundtrip flights from Boston to Los Angeles, with the lowest fare costing $298. Adjusted for inflation, that ticket should cost $635 today, but Trippler found that, not only are there nine roundtrip flights instead of three, the lowest fare was just $199. Flying from New York to Miami? In the eighties there were 21 flights, with the lowest fare costing $188. That same ticket should cost $400 in 2007, but Trippler found that the lowest fare was actually $158 and there are now 25 nonstop flights.