Originally Posted by
JoeyMeatballs
I'm not that smart so can someone explain to me how fuel this cheap is actually hurting us? I keep reading that the low fuel allows the legacy airlines to be more competitive on price & and how there is "compression" on later fare bookings.
If fuel is low, how is that not benefiting us as well?
From a legacy carrier standpoint, low fuel prices allow the legacy carriers to temporarily drop ticket prices to Spirit levels while reducing the hit they take on those drops. This can force a slight drop in demand for Spirit's tickets, but more importantly causes analysts to see or forecast a slight dip in Spirit's business. Updated guidance from Spirit, which my guess is they're taking a page from Apple's book, is putting a slight damper on Spirit's stock. My guess is this dip is very much welcomed.