Originally Posted by
Bitcoin
Not at all, read the ceo email from yesterday. No other airline owns the vast majority of their fleet giving capacity flexibility along with the lowest CASM in the industry. It's not even close, some airlines have more than double our CASM. Due to the low acquisition cost, most of the fleet is owned while still maintaining a strong balance sheet. Last time we saw new customers that were flexing down to the low cost sector at a rate higher much higher than those choosing not to travel. We're actually much better setup than 2008 with significantly more fuel efficient aircraft.
I made a similar point a few post back. During the peak of global financial crisis with $140 barrel oil and 7% unemployment, algt revenue was up 40% in 2008 along with double digit profit margins. While they were thriving there was close to 20 airlines globally that filed bankruptcy worldwide in 08-09, that is exactly why Maury wanted it to last longer. If your jets are owned instead of leased it doesn't matter what you paid from them, 2, 50, or 100 million as long as your balance sheet is healthy, which it is. I would have to agree, you're in a stronger spot now with mostly owned fuel efficient aircraft in the most resilient sector of the industry. I think your management realizes a lot are buying into the fear and this is a great time for them to get the best deal they can get.