Originally Posted by
UPTme
Higher fuel costs help us against ULCC, as their fares rely on their low Ex fuel CASM. So, higher fuel prices hit them harder than they do us. We will be fine. Maybe Dougie will have to only buy back $1 billion in shares this year. Rough life.
First your comment doesn't make sense. Ex fuel CASM is CASM minus fuel (excluding). Their fares rely on total overall lower costs than competitors. Spirits ex CASM actually decreased last quarter and is forecast to continue dropping.
Their margins go up as we have to raise prices to cover fuel increases.