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SVQLBA said:(Delta Mainline CASM, not consolidated, was 9.75 c/ASM, BTW)
BoeingBoy said:[snip]
Jim
ps - I didn't see the 4Q mainline CASM including fuel in the press release - did you calculate it or is it in something I haven't seen.
[post="244108"][/post]
funguy2 said:My notes indicated DAL Mainline CASM was 10.40cents, and including Connection was 11.10cents. I think those included the Special Items. Excluding Special items, you are right 9.75cents. Including or excluding items is always a tough call for me, because sometimes you need to and some times you don't, to keep it apples to apples. And most of the time, the swing is not as big as it was for Delta this quarter...
[post="244102"][/post]
DLFlyer31 said:What stands out to me isn't the CASM, but the RASM (which many people seem to ignore).
US's RASM seems to have fallen much faster than the rest of the industry. Most of the airlines reported RASM declines between 3-6%. US saw RASM fall almost 11%.
Here's a selected few (PRASM change in Q4):
CO -1.0%
NW -3.0%
AA -3.1%
WN -3.9%
DL -5.6%
FL -5.6%
B6 -7.3%
US's -10.9%
Maybe it's the bankruptcy effect, maybe its the LCC's, maybe it's the bad publicity, maybe it's all of them...but whatever it is, US can't continue to have RASM falling that fast. It will eat up any cost gains that US has achieved putting US right back where it started.
[post="244123"][/post]
funguy2 said:So, $1.1bil in annual concessions represents about 15% of total costs. Thus, we can expect CASM (all else equal) to drop by about 15% next quarter. That would be 9.31cents CASM and 7.47cents CASM ex-fuel. So, the concessions get US Airways firmly to the lowest cost legacy carrier and within 15% of the LCC's. Of course, the employee concessions were the "easy" 15% from management's standpoint. Other structural changes to get more is much more difficult to acheive.
[post="244078"][/post]
DLFlyer31 said:What stands out to me isn't the CASM, but the RASM (which many people seem to ignore).
US's RASM seems to have fallen much faster than the rest of the industry. Most of the airlines reported RASM declines between 3-6%. US saw RASM fall almost 11%.
Maybe it's the bankruptcy effect, maybe its the LCC's, maybe it's the bad publicity, maybe it's all of them...but whatever it is, US can't continue to have RASM falling that fast. It will eat up any cost gains that US has achieved putting US right back where it started.
[post="244123"][/post]
USFlyer said:Also keep in mind that most of the "benefits" of the latest round of concessions won't really kick-in until this quarter and next.
[post="244121"][/post]