CAirBear

Chatted with one of the base CP this morning. Word is we are the leading airline in Load Factor.

RonnyK320

That's awesome, but it doesn't mean we are making money.

CincoDeMayo

0 cash burn is the goal way before making money

Ticket prices are in the dump for all airlines, so the fact we can still fill up planes, when airlines like AA are essentially giving seats away, is a good sign IMO; because even at $10 tickets, people are still flying us vs AA and the like. And when Spirit sells a $10 ticket and AA sells a $10 ticket to compete with NK, AA just loses more money on that ticket. No surprise their cash burn remains epic; while fortunately we have issued revised guidance that our burn will be on the “better end” of what was anticipated.

The ULCC model is why we came here. Yeah, they hired us, but many of us knew that this model would hold up better than most in tough time, and are these tough times.

week

Not to mention we can sell a $10 ticket and end up getting $85 out of it in bags, perks, profit on snacks, fees, etc. whereas AA and more importantly SWA only get $10 out of it.

there is no good airline news in 2020, but at least we are delicately trending in the right direction in terms of loads, reducing cash burn, and increasing capacity

CincoDeMayo

And SWA still isn’t selling the middle seat....they say their passengers list that as one of the main reasons they are flying with SWA; however they just asked for immediate and quick concessions from labor groups or they will have to furlough. I personally would not be too thrilled with someone asking for concessions while they only sell 2/3 of their tickets.

Qotsaautopilot

unfortunately all of our boats float together. If bankruptcies start happening the pressure will be put on even at the non-bankrupt airlines.

the ink isn’t even dry on United’s trash deal and the other CEOs are already posturing. Evidenced by Gary Kelly’s comments. I guess the good news if you want to call it that is we are already the lowest paid...

dont you just love that in good times it’s impossible to negotiate mid cycle improvements but when times are tough the airlines immediately come to the employees with their hand out. So far I’ve been happy with how spirit is handling this disaster but I sleep with one eye open too.

Halon1211

please explain to me again why Spirit will feel the pressure to declare bankruptcy even if we are profitable again? This makes no sense

CincoDeMayo

I sleep with both eyes closed and keep both eyes open when awake. You can fear the boogie man but remember anything given back mid cycle is a voluntary concession by the pilots. And as much as I was not happy with the UAL deal personally, the pilot group voted it in. And if they finally finish up some sort of second round of payroll protection, that deal goes away and they keep the small gains of the deal.

I am sorry but I dont agree with your "pressure will be put on the non pressure airlines." The MEC has already stated no concessions the last time the company mentioned the topic. And instead of entertaining concessions, they inked a deal to allow a lot of our pilots, including me, paid time off to spend my morning disagreeing with you on the forums, while being paid. Now if legacy carriers file BK, have CBAs renegotiated, in or out of the courts, will that effect our next section 6 talks, sure. The price/value of pilots changes, but the numbers in 2022/2023/2024 will need to support that claim.

Qotsaautopilot

Not pressure to file for bankruptcy if we are making money, but pressure put on pilot groups to avoid bankruptcy. If other airlines are going bankrupt it would certainly be amazing if we are in the black at the same time but that’s unlikely imo.

Have we forgotten the last 19years. We’ve all seen this before. Once concessions start happening in one place managements start applying pressure even if they don’t have a need to

Tranquility

Was Southwest not profitable when Delta, United and eventually the old AMR declared ch.11?? Different business models.... Back then, Southwest was actually low cost, and leisure oriented. Sound familiar?