Originally Posted by
CincoDeMayo
0 cash burn is the goal way before making money
Ticket prices are in the dump for all airlines, so the fact we can still fill up planes, when airlines like AA are essentially giving seats away, is a good sign IMO; because even at $10 tickets, people are still flying us vs AA and the like. And when Spirit sells a $10 ticket and AA sells a $10 ticket to compete with NK, AA just loses more money on that ticket. No surprise their cash burn remains epic; while fortunately we have issued revised guidance that our burn will be on the “better end” of what was anticipated.
The ULCC model is why we came here. Yeah, they hired us, but many of us knew that this model would hold up better than most in tough time, and are these tough times.
unfortunately all of our boats float together. If bankruptcies start happening the pressure will be put on even at the non-bankrupt airlines.
the ink isn’t even dry on United’s trash deal and the other CEOs are already posturing. Evidenced by Gary Kelly’s comments. I guess the good news if you want to call it that is we are already the lowest paid...
dont you just love that in good times it’s impossible to negotiate mid cycle improvements but when times are tough the airlines immediately come to the employees with their hand out. So far I’ve been happy with how spirit is handling this disaster but I sleep with one eye open too.