Originally Posted by
Bluedriver
Now we are back to Spirit isn't profitable because COVID money is running out for their target demographic? The last time Spirit was profitable COVID had never existed. But if you're right, and it's the COVID money, that's not coming back... So let's see if I have your argument correct. There's nothing wrong with the ULCC model, it will be successful, but it's not successful now, because the COVID money ran out?
You should tell the United CEO that demand for his product is all a fraud mirage, as he has bet the company on an aircraft order book of about 1k jets (only slightly exaggerating).
The Covid money masked the fact that we are in a recession that no one wants to see, and it will impact all the airlines. Furthermore you fail to show factual evidence for why the ULCC underlying business model is flawed, and instead you conflate the business model with quarterly losses. Uber Technologies posted it’s first operating profit
ever last quarter, are they a failed business model?
More than one thing can be true at the same time:
1) The ULCC model works
2) Management has made some bad calls
3) Government spending has propped up different sectors of the economy