Originally Posted by
Carahog
I wonder however these prices are still higher than the Amazon volume that got cancelled.
If that’s the case, then even though what you say is true big picture, in this specific case margins may still be higher.
Keep in mind we are not comparing average customer margins against Amazon. Choosing to drop Amazon business is not materially impactful, and most likely a good decision. But decreasing general customer net margins most definitely is. We have seen what price dumping has done to the airlines, nothing but losses and BK. FINALLY, after decades, it seems they finally learned their lesson. It is ALL ABOUT RASM and unit profitability. Airlines are willing to cede market share if they will loose money. Airlines to cargo operators may not be the same, but one of the most important metrics is unit revenue per piece.