CASM VS. Airfares
I saw a figure for the cost per available seat mile (CASM) for United excluding fuel. I thought about it for a second, and it downright shocked me.
I read United's CASM EXCLUDING FUEL was about .08 cents. So to fly a seat across the country (Lets say LAX-JFK) is 2500 miles X .08 cents per mile. That's $200, or $400 round trip, and that does not include fuel!! So if United sold $400 round trip tickets from LAX-JFK, they would only break even if their planes were 100% full, and they did not have to pay for any fuel. Isn't fuel an airlines LARGEST expense?
My question is what do you believe is the CASM for fuel? Then I'd just like to hear everyone's opinion about this information. I think United has one of the lowest CASM's of the legacies because of lower labor costs, newer fleet, no pension costs, and all the debt they were able to shed in bankruptcy. If United looks this bad, how bad are American, Delta, and Northwest looking.
Last edited by ryane946; 03-29-2006 at 07:42 AM.