Originally Posted by
1Seat 1Engine
I've heard Gary Kelly talk about this very subject and he strongly believes that it's working. There is no reliable metric to measure what a customer would have decided, only what they actually did decide. So it's hard to say that charging for bags is really making money for the legacy carriers.
Here is a reliable metric for you:
Profitable Yes or NO
Originally Posted by
LuvJockey
I've been watching revenue comps with other companies closely, and it's really hard to tell if not charging for bags is helping or hurting us. It seems as if last quarter passengers are starting to react positively to the "no bag fee" campaign, but the revenue numbers aren't conclusive yet.
I "LUV" how you guys are not willing to second guess your CEO, personally I think this is a huge blunder and will most likely cost him his job in the next 24 months.
How is it that Alaska posts 80+ million profit, jetBlue and Airtran significantly in the black. If this campaign was working WN would be flying with 100% load factor and have huge pricing power. The opposite affect is being seen, WN recently announced the 25, 50, 75 discount fares which is an indication that demand is not as strong as the local "Luv" pilots are hoping for. WN posted a loss last quarter after fuel expenses and their forecast was more of a warning than anything.