Originally Posted by
redhot
like Barry said before… stop doing things that lose money. In order for us to furlough the far term has to look worse not just a couple of months.
I would rather reduce any losses over September and October by not flying planes half empty then reduce the schedule and break even. That’s not a bad strategy and I don’t see why people are screaming the sky is falling. They have said this over and over we are going to be more disciplined on not flying off-peak days. That is exactly what they are doing.
To be be honest this is a smart move from our airline to not hemorrhage money and end of like the next NK. People need to understand we are not close to where they have been for the last 3-4 years. Can things get worse of course, but there has been 0 8-K’s put out on suggesting earnings not in line with what they had reaffirmed a little bit ago.
all that being said, I just want to wait and here what the near term looks like come the 5th.
all that being said it drives me crazy how they run the airline but I would much rather them be proactive with halting classes and reducing block hours to tread water then take on significant debt.
Obviously my feelings aren't brought on by off-peak months being slower. But let's look at a few facts:
We had a large number of COLAs during the peak travel season
We have seen softening demand for domestic leisure travel - especially on the cheap end
ULCC and Basic Econ (legacy) seats are overabundant
Our peers (JetBlue, Spirit) are either in dire straights or only recently *maybe* turning the corner
We have an indefinite suspension in hiring
We are apparently overstaffed
I am not saying the sky is falling, but the shades aren't super rosy right now. It's definitely time to be concerned, and yes we will find out a lot more come August 5th.