Originally Posted by
FNGFO
https://www.google.com/amp/s/www.tra...ravel-2020.amp
Obviously that’s just a small snippet and not enough to build business hopes on, but saying their isn’t pent up demand is lacking in understanding of how the average person operates these days. It’s a pop tart, I want it now, YOLO society. And many won’t let personal finances get in their way. They’ll take a weekend getaway on credit because they’ve been cooped up. Many will feel they deserve it.
I’m not saying that’s a healthy mindset or smart way to run a household or finances. But it is reality. And don’t think for a second that airlines, destinations and credit card companies won’t sweeten the pot with their “deals” to get people out and about.
Not all or even most of the 30 million unemployed number represents the average, everyday income earner, and there’s 120 million other people who are employed. Also, there’s not some absolute stratification of customers that says that Spirit will suffer due to many lower income wage earners ensuring hard financial times. People will move up and down in product based on their monetary situation. Many who might have paid a lower AA fare will be looking at rock bottom ULCC fares now. In fact, many will use the extremely low fares as part of their excuse to go out and live a little.
We are not a nation of thrift or frugality. I would tend to agree with your assessment if it were so. But it’s not.
There will be a surge in demand in my opinion. Particularly if the popular vacation getaways open back up. It probably won’t be last year’s flying levels. And I’m sure it will tail off a bit after the populace gets the need to go somewhere for 3-4 days out of its system. It might settle at 60-70% of recent normal levels. That’s enough for us to get by for the time being. Maybe even thrive if we position ourselves well.
I agree with a poster above who says we may furlough, and that it will probably be short lived. I also agree that M/A is a real concern in the next 18 months imoho. There will be a few predators circling and other reduced legacies trying to pick up capacity, and maybe increase the size of their recently trimmed fleets. Likely after shedding contracts and other agreements in bankruptcy.
Nail hit on the head with this post. For better or worse, we are becoming a country and society of YOLO. Spirit has done very well at capitalizing on this and this and thus, Spirit is the airline of the YOLO crowd. Needless to say, the YOLOs will be the first back in the air.
Will furloughs come Oct 1? Hopefully not but Whether you’re number 1 on the list or number 2400, live as if they will and plan accordingly. Any number of things could happen between now and then, ie, huge inroads in treatment or vaccine, a paradigm shift to open things up while protecting the most at risk, extension of the CAREs Act, etc. Conversely, we may see little improvement to the current situation. Personally I’m hopeful and optimistic for the former, but planning for the latter.