Originally Posted by
T773ER
There’s more to the update than that if you keep reading and compare to prior guidance.
The company also expects its fuel bill in the quarter to be about 4%-7% higher than previous estimate.
Meanwhile, a combination of lower-demand in January and February and higher capacity has weakened its pricing power.
Total revenue per available seat mile, a proxy for pricing power, is estimated to be up 22%-23% in the first quarter from a year ago, slower than a 25% growth expected.
“Lower demand growth than other months” is not at all the same as “lower demand.” Once again, there is no bad news in this report. You who are taking this to mean the economic conditions are weakening such that our negotiating environment is not as strong (for pilots) are hurting yourselves and the entire pilot group by misunderstanding this.