Earnings Call October 25 / Predictions ?
#111
Gets Weekends Off
Joined APC: Dec 2021
Posts: 597
Haha yea that's true. Throw out some dumb idea that sounds ok to investors that don't know the industry and then try to clean up the thing that really needs to be cleaned up, customer relations and service, It's not like he can come out and say, hey we really underestimated how well you need to treat customers. We drove them all away and it's showing in our bookings and subsequent ticket prices. Oopsies.
#112
Gets Weekends Off
Joined APC: Mar 2022
Posts: 474
People are voting with their wallets and the results are in. Frontier response: Double down on ULCC some more.
#113
Gets Weekends Off
Joined APC: Jan 2016
Posts: 261
Yeah Europeans as a culture expect crappy service…🤔? There are laws in the EU that protect consumers way more than here. European airlines wouldn’t be able to get away with the kind of crap that BB has gotten away with.
#114
Gets Weekends Off
Joined APC: Mar 2017
Posts: 195
Wages: generally lower at Euro ULCCs.
Airport costs: generally lower because Euro ULCCs can serve secondary airports to a greater degree than do US carriers. E.g, it’s much cheaper to serve London via Gatwick, Stansted or Luton. Barcelona? Try Girona. Rome? Ciampino. Vienna? Nope, Bratislava. Meanwhile F9 has to deal with LGA if it wants to serve NYC because nobody can make it work at Islip. And that’s not cheap. F9 even serves SFO, SEA, DCA… not cheap to operate in. F9 tries places like ONT and TTN but those are niches and I don’t think they get a ton of flights.
Competitive landscape: probably better for Euro ULCCs than US. Euro legacies have their conglomerates (IAG, Lufthansa Group, KLM Air France) but I don’t think any of those have dominant intra-EU networks approaching what the Big 4 have within the US. That plays a big role in why Ryanair has come to dominate.
#115
True, lower cost does not mean lower quality. I’ve used the LCC/ULCC in Europe and I would do it again and again. You get a good service at a low price and most importantly you get treated like a human being, which is what most passengers complain about F9.
#116
Gets Weekends Off
Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,479
Q3 Utilization was 11.3 hours vs 11.1 in Q3 ‘22.
Load factor was only 80% vs 82.5%
Fares are only $39.17 vs $57.57…down 32%
Fees $75 vs $77
Fuel prices actually improved 20%
CASM has improved
Essentially everything was better except for fares and some load factors. We are missing out on 130M in revenue from fares due to the decline in prices. We would have had an ~8% margin had the fare price not collapsed.
All the pilots here already know it but this quarter should be a huge freaking red flag to management that they have created the problem. The policy of treating customers poorly is catching up to them. Costs are not the issue Barry….
Load factor was only 80% vs 82.5%
Fares are only $39.17 vs $57.57…down 32%
Fees $75 vs $77
Fuel prices actually improved 20%
CASM has improved
Essentially everything was better except for fares and some load factors. We are missing out on 130M in revenue from fares due to the decline in prices. We would have had an ~8% margin had the fare price not collapsed.
All the pilots here already know it but this quarter should be a huge freaking red flag to management that they have created the problem. The policy of treating customers poorly is catching up to them. Costs are not the issue Barry….
This is what I thought was going on. I need to put some thought as to the lower ticket prices. Obviously Frontier thinks they needed to lower the fares to bring in the passengers. Is it a true softening of demand? Is Barry right that we as the lowest cost option, really are a canary in the coal mine? Have the ULCCs just added to much capacity too quickly? Have the legacies built too strong of a loyalty base with the credit cards/ mileage programs? Has our carry on baggage debacle turned enough people away that we had to drop tix prices to keep the filling the planes?
Spirit is doing even worse than us. I just can't believe that the ULCC model isn't doing better. Honestly. People shop on price. Im struggling to understand why we are both having to lower ticket prices when the legacies are so expensive. Tix on United/ Delta are frequently prohibitively expensive for families and yet here we are.....
#117
Isn’t that a sauce?
Joined APC: May 2022
Posts: 280
Thanks for the information.
This is what I thought was going on. I need to put some thought as to the lower ticket prices. Obviously Frontier thinks they needed to lower the fares to bring in the passengers. Is it a true softening of demand? Is Barry right that we as the lowest cost option, really are a canary in the coal mine? Have the ULCCs just added to much capacity too quickly? Have the legacies built too strong of a loyalty base with the credit cards/ mileage programs? Has our carry on baggage debacle turned enough people away that we had to drop tix prices to keep the filling the planes?
Spirit is doing even worse than us. I just can't believe that the ULCC model isn't doing better. Honestly. People shop on price. Im struggling to understand why we are both having to lower ticket prices when the legacies are so expensive. Tix on United/ Delta are frequently prohibitively expensive for families and yet here we are.....
This is what I thought was going on. I need to put some thought as to the lower ticket prices. Obviously Frontier thinks they needed to lower the fares to bring in the passengers. Is it a true softening of demand? Is Barry right that we as the lowest cost option, really are a canary in the coal mine? Have the ULCCs just added to much capacity too quickly? Have the legacies built too strong of a loyalty base with the credit cards/ mileage programs? Has our carry on baggage debacle turned enough people away that we had to drop tix prices to keep the filling the planes?
Spirit is doing even worse than us. I just can't believe that the ULCC model isn't doing better. Honestly. People shop on price. Im struggling to understand why we are both having to lower ticket prices when the legacies are so expensive. Tix on United/ Delta are frequently prohibitively expensive for families and yet here we are.....
#118
Gets Weekends Off
Joined APC: Apr 2023
Posts: 236
Have you seen the TikTok's of life on a Ryan Air flight? Or looked at the reddit subthread chock full of vitriol?
#119
Gets Weekends Off
Joined APC: Aug 2008
Position: Swing that gear
Posts: 354
I don’t think we are disliked any more or less than Ryanair or EasyJet. People will buy cheap then complain about it everywhere. These seats are much easier to tolerate on a short hop in Europe than PHX-MCO though.
#120
When you’re broke, you’re broke. A recession and credit card default isn’t going to safe F9.
Thread
Thread Starter
Forum
Replies
Last Post