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You have to pay for crew, plane mortgages, gates, and a lot of Mx even when planes are parked. So as long as you can cover your variable costs (things like fuel, some mx, hotels, per diem, ldg fees, peanuts, soda pop) they're better off making SOME money to offset at least a little fixed cost.
Also helpful to maintain market share, with an eye to the future. The mid-tier domestic carriers set the pace for that by retaining capacity (no pilot furloughs) that led to the big-3 taking surprising measures to also mitigate furloughs, which in their case would starts years of costly training cycles which would cripple their future capacity flexibility.
You forgot to mention the BLM extortion tax!Originally Posted by rickair7777
In aviation, especially right now, it's probably not so much trying to (re)build a customer base as it is to cover at least some of their fixed costs, which are VERY large by the standards of most industries.You have to pay for crew, plane mortgages, gates, and a lot of Mx even when planes are parked. So as long as you can cover your variable costs (things like fuel, some mx, hotels, per diem, ldg fees, peanuts, soda pop) they're better off making SOME money to offset at least a little fixed cost.
Also helpful to maintain market share, with an eye to the future. The mid-tier domestic carriers set the pace for that by retaining capacity (no pilot furloughs) that led to the big-3 taking surprising measures to also mitigate furloughs, which in their case would starts years of costly training cycles which would cripple their future capacity flexibility.