Originally Posted by
deelmakur
The price of oil has dropped by 30%. Presumably increasing the amount of miles required for free tickets, and cutting minimum mileage earned, didn't save enough, so let's just dump 10% of the employees on top of an 8 % reduction in flying.
Jet Fuel prices are still 44% higher than a year ago. However, this would be less of an issues if demand had remained strong. A softening travel market combined with higher fuel prices = perfect storm.
One smart move on AS' part is that there will not be significant reductions in the fleet. Part of the capacity cuts will come from lower utilization, which will contribute to improved operating performance and allow AS to add back capacity easier at a later date.