Originally Posted by
Aquaticus
Our formula is better. They are just more profitable due to less unions, fortress hubs in cheap landing fee airports, more planes centralized on a booming domestic market for the past 20 yrs, and farming out their widebody lift. Everyone on our list benefits from our widebodies pulling the senior bidders off the narrow bodies allowing you to be a higher % in whatever seat you are holding.
Two very different airlines.
Our formula is not better. In fact as we grow and add to the expense line we fall further behind. Our 2022 expense were $42,618 Million as recently reported. In order to have 6.9% profit margins we would have had to make $2.9 billion in profit. So that’s an extra $400 million that DAL gets 20% of that we don’t. As expenses go up with new aircraft and more employees, it takes even more profit to hit the 6.9% and we fall further behind. It’s simple economics of scale. The company knew this years ago and we fell for it. Another classic example of Checkers vs Chess.