United Reports May 2014 Operational Performance
Here's UAL's MAY numbers, as others have asked for. WT, stop what you are doing or get reported.
You are a prime example of a stalker of all airlines...
I posted those numbers elsewhere.
but, since you didn't add any commentary on UA's numbers what is notable is that UA has quit reporting its RASM change which leaves what AA, DL, and WN have posted as the only reliable monthly metric as to how RASM is moving in the industry.
UA slightly reduced capacity and saw a slight increase in traffic; WN did slightly better but both carriers reduced capacity while AA and DL increased it.
AA used to report fuel information but quit doing that under HP/US mgmt. which leaves DL and UA the only carriers to report fuel information. On that basis, DL expects its fuel costs for the quarter to be approx. 12 cents/gallon lower than UA's.
For all the babbling WT does about how the legacies have learned how to compete with WN, he completely misses the real reason.
Only one thing, other than shedding debt in bankruptcy, has brought profits to the legacies.
Bag fees.
This is untapped wealth for SWA and when they start charging for bags and lower base fares, you will see how the legacies won't have any more tricks up their sleaves.
SWA will be loaded with free money and we will see real competition.
except if WN really thought that they could add bag fees and not lose passengers, they would have done it.
They haven't done it because they know full well that free bags for all is a big part of what keeps customers loyal to WN. It has nothing to do with getting superior revenue but rather lower costs.
IF WN added bag fees esp. as they add service into highly competitive markets, it is far from certain that they would become the choice of travelers in highly competitive markets.
WN's product is not simple; their ramp agents have much higher workloads because WN uses bags as a marketing tool.
Further, many of the legacy airlines are reducing the number of people who are paying bag fees as they further "complicate" their business plan in order to target fees to the right people.
If WN doesn't charge for services which they could be, it is the other carriers who are managing their businesses more effectively.
Spirit and Allegiant have even more unbundled business plans that look more like Ryanair and Easyjet but people flock to those airlines.
again, I am more than happy to give WN credit for what they do but they also have to be held to the same standards and metrics which they used to compare themselves to the rest of the industry for years. WN isn't generating revenue on a level any higher than at least some of the legacy carriers and other carriers have indeed surpassed WN on several key financial metrics.
Further, no one, certainly not on Wall Street, measures WN's value and financial performance today based on what they did for decades. They are measured AGAINST OTHER AIRLINES based on what they are doing today - bag fees included or not. WN's market cap is very much proportionately inline with AA, AS, and DL as strong financial performers in the industry.
WN is a well run company and I have never said otherwise but WN is not the only well-run company in the industry which is delivering solid results for the majority of the US airlines.
And I still want to hear from WN people what the implications of WN's financial performance will be on its labor negotiations. Profit sharing will clearly be up but what about long-term labor rates?
WN's labor rates are still above its legacy peers and WN is losing its productivity edge which is what gave it the ability to pay above average labor rates.
