Delta reports record Q2 2014 Profit
#31
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#32
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because they expanded into saturated markets such as ICN-SEA, which already had 2 carriers serving it, thereby diluting the fares, that's why.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
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#37
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IMO, trading away profit sharing for fixed percentage raises is a fools' game, but the DL pilots (and AA pilots) did just that in exchange for small raises. Delta simply took back a portion of the profit sharing from all other DL nonunion employees and gave them paltry raises, too.
Similar result at AA, where former management offered 15% first dollar profit sharing to all employees in its bankruptcy term sheets (the concession demands) but the AA pilots traded away 2/3 of that (10%) in exchange for small raises.
All other AA employees lost the same percentage of profit sharing due to "me-too" clauses that were designed to treat all employee groups fairly. So they lost 2/3 of their profit sharing potential and gained small raises. Since bankruptcy, some AA employee groups have traded away their last third (5%) profit sharing, meaning they won't get anything from this years' expected $3 billion to $4 billion profit at AA.
Negotiate raises, sure, but never trade away participation in profits. Fools.
Similar result at AA, where former management offered 15% first dollar profit sharing to all employees in its bankruptcy term sheets (the concession demands) but the AA pilots traded away 2/3 of that (10%) in exchange for small raises.
All other AA employees lost the same percentage of profit sharing due to "me-too" clauses that were designed to treat all employee groups fairly. So they lost 2/3 of their profit sharing potential and gained small raises. Since bankruptcy, some AA employee groups have traded away their last third (5%) profit sharing, meaning they won't get anything from this years' expected $3 billion to $4 billion profit at AA.
Negotiate raises, sure, but never trade away participation in profits. Fools.
#38
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I'd like to see a breakdown on the numbers... my anecdotal experience is that Y tickets are way more expensive than before while J tickets (not counting the corporate discounts) are perhaps stable.
#39
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But I believe the revised profit sharing arrangement still kept the percentage on the top end (i.e., 20% after $2.5B of profits)....
What's amazing is that profit sharing for the first six months this year is already at 85% of last year's total profit sharing pool (Total 2013: $506m; first half of 2014: $434m). So barring unforeseen circumstances, profit sharing for 2014 could be around $900m (they are already estimating $350-$400m of profit sharing for Q3 alone).
#40
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And yet there is some evidence of a rollback on the TCON UG policy change.
I'd like to see a breakdown on the numbers... my anecdotal experience is that Y tickets are way more expensive than before while J tickets (not counting the corporate discounts) are perhaps stable.
I'd like to see a breakdown on the numbers... my anecdotal experience is that Y tickets are way more expensive than before while J tickets (not counting the corporate discounts) are perhaps stable.
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#42
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#43
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Maybe they have actually learned that adversarial relationships are often not positive for anyone involved? I mean, it isn't like they don't have some history to tell them that overplaying their hand can doom the airline and force even worse concessions down the road.
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Why would they? Charging for bags brings revenue and people don't actually seem to mind enough to factor it into their purchasing decisions. Everyone is happy. So, no, it is not going to happen.