Originally Posted by
Andy
I'll read it and then decide. All of the rumors out there look like bovine excrement.
But I'll also weigh the economic landscape, which is deteriorating daily.
As for fuel costs, United filed an 8-K dated Maym16 with an update on Q2. The new fuel cost estimate should freak anyone out. It went from $3.43/gal to $4.02/gal.
I don't know if this link will work:
https://ir.united.com/static-files/8...9-9614c0d331b6
In the same document though, revenue increases proportionally resulting in the same estimated operating margin of 10%. Like I said, it's not a big deal if the costs increase are met with a consummate revenue increase.
What I would be worried about is if people become so pinched for cash in the near future that United is not able to offset fuel/labor costs though increased fares. That would be like the recessions of the past we are familiar with. Fingers crossed, and good luck with the AIP.