Thread: Q2 Financials
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Old 08-01-2023 | 01:24 PM
  #7  
Stayontarget
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Originally Posted by turbojet28
Better than a loss, but another quarter with margins half of what legacies enjoyed. Not as many people seem to be as concerned about that as I would think.
One of the questions by an investor related to this. They touted the ancillary fees being $5 higher but the average fare per ticket was down $17 per ticket. Shurz mentioned it was because of our low fares driving demand approach. 30% of our routes being new and pushing the prices down to get it going. Some stick and some don’t. But considering we probably always do that it didn’t really explain the drop. The amount of go wild pass promotions and deals I’ve seen lead me to believe there is something more fundamental happening. Maybe our reputation is becoming more problematic?

I also have guessed the margins are lower at all low cost carriers simply by nature of the service. First class and business travelers are willing to pay more and pad the margins when times are good. We still really haven’t seen a recession since Frontier has developed to know what will happen when times are bad.
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