CremaDiLimone
Veteran
- Jun 8, 2016
- 1,817
- 154
Now with this heath crisis going on this is going to cause lost revenue and I for one am not willing to take a chance or wait another year for an improved agreement, which is unlikely.
i don't think you're a company guy, i believe you should just say you love the contract and leave it at that.
you're worried about revenues?
oil is now at $50/bbl.
last year, aa purchased 4.5 billion gallons (mainline & regional) of jet fuel at $2.07 a gallon. that comes to over $9.3 billion in 2019 for jet fuel. in 2019, aa spent $12.6 billion on everyone's salaries/benefits/profit sharing.
you see how close aa's #2 expense is to labor expense.
if aa can average just .22 cents less for jet fuel over an entire year, that's $1 billion more dollars that came out of nowhere.
don't worry..doug parker isn't worried and that's why.