Originally Posted by
Lobaeux
We must be engaged in a war with Delta then. Just taking a look, Delta flight on 4 Feb is $117.10, bags look to be extra. On Spirit, 4 Feb, price is $34.10, baggage extra. Still quite a bit of difference, but I wonder how long this little "price war" can last?
Most likely we have nothing to worry about. However, if profit margins compress over the next two quarters during the fast growth phase, expect analysts to pressure management to dial back the speed of our growth. Wall Street only wants us to grow if our profit margin remains stable. And Wall Street has already been skeptical of our ability to grow at such a high rate and not diminish profit margins.