Originally Posted by
johnso29
Well we are starting to see the bottom WRT to increasing PRASM through capacity reduction. IOW, shrinking to profitability isn't working anymore. Taking that into consideration it will be interesting to see how RA and the gang respond to the LCCs refusal to join in on the latest fare increases.
Or the many hundreds of domestic narrowbody capacity groth aircraft coming on line in the coming years from the so called LCC's and start ups. JB alone is planning on a stunning 50% increase in their already dominant BOS presence and DL's answer is to allow UAL into terminal A to make room for it because the alternative would be to actually use the gates to full capacity and we can't do that. Then there's the dual subsidized foreign EGO airlines that will dump super premium widebodies into just about every large US city simply because they over ordered and have no place to put them.
Will DL keep culling capacity to fund all of that, or will DL eventually respond by competiting ruthlessly even if it means a reduction in Q over Q paper numbers for a while?