Quote:
Agreed 100%Originally Posted by Stayontarget
That is totally correct. Premium was handed out like candy and reserves were saved for last resort. Then literally over night the policy changed and was flip flopped. Now reserves are first up and premium is saved as a last resort and from a business standpoint this is the correct policy. Why pay a reserve to sit and a premium at 150%+ when you could just pay the reserve to do the trip? The policy also happened to flip just after a SEC earnings call where BB mentioned CASM being higher but expected to fall. So I’m guessing they figured out how much money they were wasting on premium and “fixed the glitch.”
I was shocked that they were going to premium before using up all the reserves. Knew that wasn't going to last