Originally Posted by
Sailor
I agree with Norm and Scott, ULCC will work well with higher fuel prices. People will look for the best offer, and we are good at it.
Only one problem...our customer, the leisure customer looking for that ultra cheap fare, is extremely price sensitive. If they're paying $3.10/gallon to fill up their vehicle, they may think twice about buying an airline ticket. A five dollar increase in the price of an airline ticket to cover rising fuel costs may cause them to NOT book that ticket.
No matter how cheap the ticket is offered, rising oil prices affect our customer more than the big boys' customers.