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10-14-2023 | 06:56 AM

#271

HSCompressor

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Joined: Mar 2019

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Quote:

Originally Posted by buzzer

That makes sense but how to you align that with statements I've heard that LCC's do better in a "recession"? I've heard that passengers will buy the cheap tickets as affordability goes down. Good thing I just fly airplanes!

Yeah a certain chief pilot also said repeatedly we’d love to compete with higher oil prices. We have the greenest fleet, most fuel efficient compared to everyone else. Blah blah blah.

We’ve been having higher oil prices for almost two years now. How’s it been going?

Now we’re flexing how well our model does in a recession? Gimmie a break. Nobody wants a recession. Nobody. Including ULCC.

10-14-2023 | 08:39 AM

#272

PositiveRate20

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Quote:

Originally Posted by buzzer

Ask yourself this: Who’s making those statements? It ain’t the economists or the experts. It’s the management of said companies. Do you think there may be some potential bs in those unsubstantiated claims?

10-14-2023 | 10:33 AM

#273

Stayontarget

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Quote:

Originally Posted by turbojet28

I think it’s the difference in customer bases. I think our customers are essentially in a “recession”. They are the first ones that will be hit by an economic hardship. Higher interest rates, credit card debt, and student loan repayment restarts unquestionably will have a larger affect on our customers than Delta’s. The Delta customer is a higher net-worth customer who isn’t as quick to be impacted.

Ya and those customers probably have a billion CC based airline miles at their disposal so the CC companies will keep driving their business for a long while even if there is a down turn. I thought I heard the big 4 make a billion per year in profit on CCs alone. That’s tough to compete with.

10-15-2023 | 05:35 AM

#274

TurboFanMan

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Joined: Sep 2016

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Quote:

Originally Posted by HSCompressor

I would also like to add this. How do you compete with Delta on fuel when they own their own Oil refinery? I’m sure that’s more beneficial over time than our small green fleet?

10-15-2023 | 05:51 AM

#275

HSCompressor

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Quote:

Originally Posted by TurboFanMan

I would also like to add this. How do you compete with Delta on fuel when they own their own Oil refinery? I’m sure that’s more beneficial over time than our small green fleet?

Ive always heard very mixed things about the delta refinery. I don’t really know, myself.

But like most things, it’s probably more complicated of an answer than most people would understand. Or have access to the information to understand.

10-15-2023 | 02:41 PM

#276

hercretired

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Quote:

Originally Posted by HSCompressor

the refinery is a dog and a money looser

https://www.reuters.com/business/aer...es-2022-09-16/

10-24-2023 | 02:25 PM

#277

FangsF15

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Quote:

Originally Posted by hercretired

the refinery is a dog and a money looser

https://www.reuters.com/business/aer...es-2022-09-16/

No, it's not. There have been quarters way back where broader economics have not favored the refinery. But overall, Delta sees it as a significant advantage, especially in the NE where it is located.

Last quarter the refinery made $119 Million, YTD is $384 million.

Look at Section 9 of the 10-Q of the SEC Filiing.