Originally Posted by
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I disagree with a lot of this.
End of covid was not 24 months ago. Masks ended 16 months ago. Summer of 2022 is when things really started heating up and bookings took off, that was just 12 months ago. As an example, on June 1st 2021, we were still down 30% systemwide as far as pax go. July 1st 2023 was the first time 2019 numbers were exceeded.
The majority of the money given to the airlines was in the form of a loan. AA did pay this back in its entirety IIRC.
Reducing the pilots on property nationwide (DL had similar issues where they put a bunch on the A220 FO bid status to save $) actually increased profits, because it restrained the amount of total flying systemwide which increased ticket prices. This had nothing to do with passenger recovery though (the two were not correlated).
I don't think anyone has claimed AA management are savants.
Completely different situation at Delta then. Company has only been constrained by lack of planes and personnel for the last 18 months. If they had those our pax numbers would’ve exceeded 2019 #s much sooner.
Delta and others didn’t have to pay back the feds anything because they never furloughed. That was the string that Congress put on the money. VEOP quickly reduced headcount right before surging demand but they had parked the 777s and 88/90 fleet so constrained by physical plane availability as well as personnel.
This debate all started cause I said all the mgmt look smart when the conditions are ripe for a profit. Right now all the companies should be making a great margin. Mgmt gets touch when conditions sour, that will be the true test of mgmt strategies.
Personally hope to see AA prosper as it helps everyone if all the companies are decently managed.