Originally Posted by
Grumble
I can’t see any of those getting parked, or even the newer LCAL 757’s. Still a lot of life left in those birds (especially the LCAL 777’s), and a paid off airplane can be wildly profitable even if its hourly operating cost is higher than the latest and greatest. Just look at Delta, it’s almost their identity . Look how long they held on to their MD-80’s.
Delta owns a refinery, which during cheap oil times may or may not be worth the headache, but during expensive oil times it significantly insulates them from the jet-fuel crack spread which allows them to operate fuel guzzlers at a much better margin than UA. However in this fiasco it is within the realm of possibility that oil is going to go so high that demand destruction obliterates refining margins for DL.
Originally Posted by
iahflyr
That assumed something like $60/barrel oil and a growing economy.
Give it about a month but I think you’ll see some more concrete capacity reductions based on the price of jet fuel and the potential shortage of it. I would bet United starts parking the 757-200 and 767-300 sooner than planned.
Depends on whether they want to keep pushing for market share or not.... The 752/763 might get moved back to SFO just to keep ASMs steady there with the reduced arrival capability.