Originally Posted by 777AA
SWA will do just fine in the long term!
Because this is NOT about labor COST ANYMORE!!
THE FUTURE IS ALL ABOUT FUEL EFFICIENT AC IN YOUR FLEET/SEAT AND GREAT MANAGEMENT MANAGING THE COMPETITION, NOT YOUR LABOR!
EVEN WHEN SWA FUEL HEDGE IS GONE IN 2 YEARS, SWA WILL HAVE TO INCREASE TICKET PRICES ONLY $10-15 Each WAY AND STILL MAKE MONEY!
BECAUSE THEY OPERATE THE MOST FUEL EFFICIENT FLEET OF AC/SEAT IN THE WORLD AND OPERATE THEM 12-13 HOURS/DAY!
Funny, that's exactly what Dave Barger was saying about Jetblue in the beginnning of the year. Make no mistake, SWA made money last quarter for one reason...fuel hedging. 95 cents avg cost per gallon. vs well over 1.50 for Jetblue, for instance.