Originally Posted by
E6BAV8R
You make a good argument. But, this is exactly the same way new (and cheaper) airlines have always entered new markets. If I recall correctly, it just came out last week that, on a per route operational cost-basis, NK is 46% cheaper to operate than United. AA, and Legacies, can price match all they want, but they'll certainly be losing money on a per route cost. Sure, they'll keep doing it (particularly from AA towards South Florida), but they're also on track to lose more than $1 Bill this year; whilst United and Delta are expected to make profit.
They can price match all they want, but they can't compete in the long term. Well... there's always bankruptcy. Which, AA will need a miracle, over the next few years to avoid it anyway.
This post is hilarious to read after the Q2 earnings are in. 52m loss in a quarter which you claimed is historically the easiest quarter to make money in.