Understanding of the information within this thread is reserved for readers who can read, write, and interpret business statistics.
The purpose of this post is to show that Ted is simply not "new paint" as many unintelligently assume.
The facts from UAL's latest 8K:
* noted CASMs (UA = 9.99, F9 = 8.18, WN = 7.84, B6 = 6.02)
1. Ted's CASM itself cannot be 25% higher than the average LCC CASM as United's overall CASM includes all mainline fleet types, particularly widebodies, that have higher CASMs on an equivalent route. One would expect it to be significantly lower than 9.99 as Ted utilizes efficient A320s in an all-coach configuration with the same amount of seats as a jetBlue A320.
2. A combination of a 6.5 percent load factor premium with a nearly 20% fare premium suggests a RASM/PRASM premium of around 20%.
Now I leave it to the intelligent readers to give their input on these figures and analysis. Keep in mind, unintelligent readers, that these numbers are not "cooking the books" as this is in a report given to the SEC - not an internal report.
It's my opinion that while these figures aren't exactly proof positive on Ted making a profit for UA - it's clear and OBVIOUS that Ted is doing a much better job tha UA mainline could in competing against LCCs on its 18 leisure-oriented routes.