Originally Posted by
Mooneyguy
But there is the real issue. We see the mess. The horrible operations. The p’d off passengers. Management see’s numbers and right now the numbers are saying we are profitable. The numbers say even p’d off pax come back for more. To them it’s fine. Barry doesn’t have to deal with it. When he goes home to Dallas he rides AA. When the numbers tell them there is a problem (no profit) then they will make a change.
If you listen to the investor calls it is clear that management is in no way “fine” with our recent financial performance. A 6-9% margin is not good enough for them. They spend 75% of the time on these calls explaining why margins aren’t better and trying to convince the analysts that it will improve.
Our margins are down not because our CASM isn’t low enough, but because our RASM is way too low. We have grown way more quickly in the past year than they originally had planned and all that new capacity hasn’t yet produced the revenue it should. Some of that has to do with domestic travel demand being lower, and the corresponding lower ticket prices.