Originally Posted by
Stayontarget
The problem is you’re thinking about a contract in today’s terms. While relevant it’s too short sighted. You need to think about the contract in the terms of a deal for the next 5-7 years. Example: Okay so we all agree on a contract with minimal gains because in 2024 we barely made a profit and could barely afford it. Then say 2025-2032 Frontier has 9000% profit margins and then in 2032 they have 0% profit margins and we sign low rates again? Who was the fool in that scenario?
Spirit is also a bad comparison because they have a multitude of problems we don’t have.
That's true. I'm sure no airline goes into negotiations without forecasting 5-7 years down the road. At this point I can be optimistic going forward however I don't have a ton of confidence in them making that kind of money. At least in the short term. I remember a conference call where a question was asked to JD about negotiations with pilot group about the contract early in 2024 and he said something to the effect, they haven't even budgeted for a pilot contract until 2025. So we'll see what this next year brings.