![]() |
Originally Posted by ramp9
(Post 4026132)
What makes you think the legacies are walking into the same environment that produced the last round of contracts?
Fuel costs have moved higher again, some airlines are already trimming growth, and there’s more focus on protecting margins than expanding at all costs. That’s happening now, not hypothetically. At the same time, they’re carrying significantly higher fixed labor costs from the last round of deals, which were negotiated during one of the strongest demand environments the industry has ever seen. Demand still looks solid, but the landscape is clearly shifting from expansion toward cost control. Personally, I think expecting another quick cycle of outsized gains like we saw post-COVID is optimistic. The current environment looks materially different than the one that produced those contracts. Sounds like talks are progressing (at the very least, we haven't heard that they're going poorly and I'm sure we would've by now). We expect to hear soon if there will be a quick contract with a lot of gains or if we're in it for a long battle. Again, not trying to derail your thread, but I'd pay attention to what we're doing for this next contract. It may have a big impact on yall's negotiations. |
| All times are GMT -8. The time now is 04:09 AM. |
Website Copyright © 2026 MH Sub I, LLC dba Internet Brands