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Old 01-21-2009, 10:34 AM
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Some airlines raised their prices when fuel went thru the roof and some also added fuel surcharges and other fees so they could stay in the black. The economy is in the crapper, fuel is at a 6 year low but prices have not come down. Fuel surcharges are still in effect at some airlines. What gives?

Are you guys noticing any difference in load factor now with so many people unemployed or afraid to spend any money?
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Old 01-21-2009, 10:40 AM
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Yes loads are down but not abnormally for this time of year. If they don't go back to full this summer then we'll be having problems though....
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Old 01-21-2009, 11:05 AM
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Full airplanes don't make money if you're not selling the seat for at least the amount it costs to operate. Airlines couldn't keep up with the rising costs last year so now they're trying to recoup them.

I hope they stay up. There's no reason people should be able to fly from JFK-LAX for $200 round trip. Charge what it costs to operate. Every other business on earth seems to have that concept down.
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Old 01-21-2009, 11:26 AM
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It is hit and miss. Most are full for this time a year from what I have seen.
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Old 01-21-2009, 12:19 PM
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Originally Posted by Zoot Suit View Post
Some airlines raised their prices when fuel went thru the roof and some also added fuel surcharges and other fees so they could stay in the black. The economy is in the crapper, fuel is at a 6 year low but prices have not come down. Fuel surcharges are still in effect at some airlines. What gives?

Are you guys noticing any difference in load factor now with so many people unemployed or afraid to spend any money?
UAL just posted a $1.3 BILLION loss for the last quarter today. You really think lowering the prices is going to help? It's going to take a LONG TIME to recoup all the money that was lost in the past year or so. I'd be surprised to see the fares come down any. Hopefully they'll stay up and get the "upper echelon" traveler flying on us again. Too much riff-raff expecting the world for nothing these days.............
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Old 01-21-2009, 12:37 PM
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Originally Posted by ewrbasedpilot View Post
You really think lowering the prices is going to help?
Of course not, but isn't that the typical MO for airlines that are losing money? Why should it be any different this time?
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Old 01-21-2009, 12:38 PM
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For the record,I am not saying the fares should come down. If the load factors are high, then the ticket prices are where they should be, maybe still too low.
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Old 01-21-2009, 12:50 PM
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The prices are too low, but we do not want to cost ourselves out of the industry. Much like the housing market.

Prices are not going down, that is why you are seeing such huge capacity cuts.
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Old 01-21-2009, 01:34 PM
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Fares are down substantially. Yield is down about 10 percent as we speak. This is a huge drop. Had fuel not dropped also it would have meant the end of several large airlines.
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Old 01-21-2009, 01:39 PM
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It some markets yes, but not in all of them.
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