What is it about premium seating that is so desireable to the traveling public right now? The consumer is getting crushed by inflation. Will the pendulum swing back eventually if the economy cools?

 

That is kind of funny. Everyone is screaming about inflation, the economy is awful, yet the legacies can't sell enough of their premium products. I swear it feels like we're living in the Upside Down sometimes.

 

My guess, and this is evident across many industries, everything sucked after covid. Lines everywhere, supply chain issues, terrible service...

Consumers are more value oriented, they dont mind spending more until to get something that doesn't suck.
Chipotle is doing well McDonald's isn't, for example.

I'm sure our main customers (im f9) have been hurt by inflation much more than DL.

 

the economy is doing better than various narratives would lead you to believe.

 

because the consumer isn’t really getting crushed by inflation right now. The only people getting crushed are those who were already either in poverty or on the brink of poverty, who now have to pay more for groceries at the store but don’t make more money. There are a substantial number of these people, but they don’t fly planes.

The average consumer makes more money now than they did before covid. They also pay more for groceries at the store. It’s just that they blame the government for inflation and they credit themselves for wage increases, so the narrative is that they’re being crushed by the government. Airfare has *not* inflated significantly since covid, so more people are more able to afford it than they were before.

The economy is doing exceptionally well as a whole right now. Essentially every other country would prefer ours over theirs. However, there are always winners and losers, even when the economy is good. The winners are buying up premium products like crazy, and the losers are stuck in a bind of high inflation and low paying jobs. People doing well are going to be a lot quieter than people struggling. But the idea that the economy *as a whole* is struggling is complete nonsense.

 

Priorities

Millennials and gen z are very much into playing the status game, moreso than the older generations.

It looks cool on social media

 

Yep! And credit cards

 

If Spirit is unable to secure a refinance deal what would the airline look like if the doors don't close?

Could they sell off planes to pay off the debt payment next year and let the airline bleed down to a smaller size. Maybe 150 planes and 2000-2200 pilots? Or would Chapter 11 or worse be next?

 

Bro come on… you’re seeking sentiment from a crony wannabe financial “expert”. Those few posts are dumbed down and counter factual. It’s a United pilot fear mongering by posing as a dull-witted financial analyst in a Spirit BK thread.

 

Exactly! I’m sure the lenders would rather work out a financing deal that benefits them, rather than wait on chapter 11 where they might get 50c on the dollar.