DMEarc

Folks- let get realistic.

Why is RAH turning a profit?

Because they don't buy the fuel! Their codeshare partners do.

SharkyBN584

I'm strangely fine with that.

HercDriver130

not unlike any other jet regional carrier today. Frankly I agree with Sharky. I suspect SKW will post a profit as well...... good for them.

And its not like companies like RAH, SKW, etc. dont take on risk..... hence the recent F9 debacle.

STILL GROUNDED

This bothers you why? That is the agreement with the majority of regionals. If airways can buy fuel at a lower price than we can, bulk alone would justify this, then why not have them just pay for fuel. After all they are basically wet leasing aircraft and crews. But that is our business model.

KiloAlpha

You act like nobody knows this....
The issue wasn't WHY are they making money

CHQ Pilot

I think the whole issue of the thread started with post #3 "It's nice to see someone finally showing a profit during these troubled times." RAH doesn't have to put up with revenue management of fuel cost and ticket sales. RAH does assume a risk as has been pointed out with the loss of Frontier. The difference is they will probably recieve a settlement from the BK judge which will probably more than offset the costs associated until the aircraft find a new home. BB latest memo made it clear RAH would not be venturing out on their own..which is obvious that he is well aware that there is no money to be made flying 70 seat aircraft (even with current crew and almost no mtc costs). As oil goes higher, mainline partners will be looking for ways to reduce the costs of their regional partners. RJs used to make money, but under a fee per departure agreement with the mainline carrier carrying the burden of fuel costs, it is a money losing situation. Hence why Frontier probably dumped RAH quickly; they saw a bottom line revenue drag. There may be big changes on the horizon with respect to regionals as mergers happen. Even the RAH earnings call broached the subject that their was uncertainty about future contracts if mergers happened, but they felt confident they could make something work (as any company would do do appease investors).