|Quoting jimbo737 (Reply 49):|
Quoting Whiteguy (Reply 42):
Doesn't it strike you as odd that from YYT, served only by AC's highest cost mainline product and Jazz that AC "always has the lowest fares"? All that talk about a better product yet AC has to resort to discounting the product below WS to fill it?
According to each airlines audited numbers, on average, it cost WS 32% less to move one seat one mile last quarter than AC.
So what you are inferring is that the much lower cost carrier, WS, is also the premium carrier in market? That might help explain why WS's margins were nearly 10x better than AC's margins last quarter.
Maybe YYT is one of the markets where AC is losing all a lot of money as it produces the worst margins of any airline traded airline in the US, Mexico and Canada.
High costs and low fares never make for a good business plan
Fuel costs have nearly doubled since the low in January. As Delta's CEO explained, there will be many markets that positively contributed to AC's stellar 1.56% profit margin last quarter that will be doing the opposite now. Delta has far more leeway given they, like WS, are starting with overall margins that are infinitely higher than AC's near break-even performance.
And what happens when AC has to actually start paying its share of Canadian income taxes? They paid no corporate taxes in the last three years.
Not quite sure what you're getting at and why you quoted me.....