Originally Posted by
full of luv
I don't know, much more so in the 80's/90's as everybody grew during profits for "market share" only to shrink during the downturns.
If 1/4 of Delta gets furloughed, it will be tough for the whole industry.
What will kill the ULCC's is an oil price spike or sustained price raise because as oil becomes a bigger and bigger part of the casm, then the ULCC CASM get's closer and closer to the legacies as labor becomes more insignificant factor.
Hopefully this discussion is academic.
Actually high oil is a good thing for Spirit. We have a newer fleet which is much more efficient than many of the legacy airframes, plus we are the most fuel efficient airline in the states. So low oil actually gets the legacies closer to our CASM. Spirit did very well with the high oil prices of the last couple of years all while growing at a huge rate.