Originally Posted by
Rainbows
Actually I read that with low fuel prices, wages are now the biggest cost to an airline. Although I'm sure that's not in the case of spirit.
From the 7/18/16 investor update...
"Adjusted cost per available seat mile excluding fuel (CASM ex-fuel) for the second quarter 2016 is estimated to
have decreased approximately 8 percent year over year compared to our initial guidance of a decrease of
approximately 5 percent."
CASM nonfuel costs are down 8%...so the company is saving more money YOY on non fuel costs.
And yes, for Spirit wages are still the highest cost versus fuel...2015 these numbers were almost exactly opposite
For Q1 Fuel was $85 mil and salaries and benefits were $116 mil