Thread: We got an AIP!
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Old 01-14-2018 | 09:12 PM
  #284  
Aero1900
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Joined: Nov 2012
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From: 1900D CA
Default Bargaining cycle

I thought I'd chime in a with depressing thought to consider:

I believe we are reaching the end of this current, upward bargaining cycle. Airline profit margins are dropping, fuel prices are rising and the economy is nearly peaked out. The unemployment rate is about as good as it ever gets, and just can't get much better. The planes can't get any fuller, as load factors are already sky high. As fuel prices continue to march higher, I fear the peak of airline profits are already behind us. Every airline in the country made less money Q3 of 2017 than Q3 of 2016. There have been huge improvements in many airline contracts, but I believe the bar won't be set much higher, if at all. United is one hiccup away from losing money, and if they do, the pilots won't be getting another raise.

Frontier, Spirit and JetBlue desperately need to catch up before the inevitable downward cycle. I read a page or two back reference to: "where will United be in 4 years & and where will that put us?" It's a great question, and perhaps I'm wrong and United gets another raise, but I don't see it. I think the current United contract is the best it'll be, or at least darn close.

Just a thought.
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