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.
we might have low CASM because we don’t offer the lounges/luxury accommodations that legacies do; we also fly primarily to secondary airports with trailers for hold rooms to save costs. Plus a myriad of other factors. That low CASM leads to low TRASM.
it’s not all about CASM tho, look at our labor costs as a percentage of total revenue: hint, today we spend more on labor as a percentage of revenue than all the legacies - why? Because our revenue is a rounding error compared to the big boys.