Originally Posted by
iaflyer
As it appears that United is trying to shrink their way to profitability, they have forgotten their fixed costs - buildings, HQ staff and the like.
from the WSJ:
United's cost per available seat mile increased 1.6% to 14.97 cents amid the company's cost cutting and capacity reductions.
Hard to make money when your cost per mile is going up, not down WHILE cost cutting!
I don't know - I just see a rudderless ship that is casting around for a buyer - any buyer to rescue them from their executive leadership.
Wow. I didn't think their costs were nearly 15 cents ASM. I thought I read where they were around 9 cents. Luckily ours is down around 6.8 cents right now.