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Old Oct 21, 08, 3:05 pm
Sam - DFW
Join Date: Apr 2004
Location: Homeless Nomad Wandering the Globe
Programs: Former AA EXP/2M Lifetime now Blackballed UA Premier Executive PWP Bronze
Posts: 5,938
Originally Posted by FWAAA View Post
Well, AA just reported a third quarter loss from operations of $360 million, or about $4 million per day before special items. Pretty obvious that AA should have priced its tickets (fare or fuel surcharge) at least $4 million higher per day. Clearly, the surcharges were not high enough to cause a profit.

If AA were rolling in billions of profits, then I'd agree that the time had come to reduce fares (either base fare or surcharges). But until then . . . AA should attempt to raise them, not reduce them.
so, AA is losing $4M a day b/c of oil? the price of oil was trading above $100 the entire quarter. in fact, oil was trading above $100 for all of Q2 and Q3 - rounding dates slightly for purpose of discussion.

now that oil is trading below $80, the fuel surcharges should be dropped.

there is no longer a fuel price dilemma. claiming that there is a fuel price dilemma is backwards looking.

there may be a "we can't run an airline" problem, but there is not a fuel price problem.

as others have said, AA's inability to run an airline should not be compensated for by charging for a situation that does not exist.

also, how much of the loss in Q3 was attributed by shutting down routes?

what about planes and personnel that aren't being used due to reduced capacity? how did that affect the bottom line?

i understand that you can't necessarily drop the fuel surcharges the day oil drops below $80, but you can't dismiss this and tie it to overall profitability.

they are charging millions now to passengers that carry baggage. they are screwing passengers on exorbitant change fees (that are jumping astronomically). they instituted these to further compensate for fuel, and i can GUARANTEE you that these will never be lowered or dropped. drop the fuel surcharge fees.
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