Originally Posted by
knope2001
If fuel prices continue to drop, what it may do is shield us from some planned cuts for fall. Some fall cuts in the Frontier system are virtually certain because of the quickened pace of E170 removals. But other possible fall cuts are simply based on high oil and demand concerns. Cheaper oil can help that.
Obviously just a day or two of dropping oil prices don't put a new complexion on the world. But every buck that oil goes down saves a bunch of money, and this coming fall/winter may look a lot different if the branded operation is solidly profitable this summer, versus marginally break even this summer, versus swimming in red in this summer.
Agreed. If oil prices continue to moderate, this should allow Republic to avoid some additional cuts that likely would have occurred this fall. It may also give them more time to see what Southwest/AirTran plan on doing with MKE.
As for SFO/LAX flights, I could see Frontier restoring service if AirTran scales back flights. However, I'm not optimistic this will happen in the coming months outside of perhaps the peak holiday travel periods in November and December. Even then, flights likely wouldn't operate daily.
While dropping oil prices are something to cheer, all airlines are going to have to find ways to deal with the reality that as the global economy recovers and demand increases (especially from emerging countries) fuel prices are likely to surge again. In Frontier's case, it will help a great deal if they can continue to grow and diversify the route network while obtaining some relieve from fare pressure in MKE.