Originally Posted by
CloudsBelow
I've since learned this is the case.
Plans changed or the original PR announcing year round service was incorrect. It is seasonal.
I'm curious to see how (if?) YYZHNL plays out next year. I still believe the service will be canned or schedule changed to Sat/Sun mid-morning westbound.
On these long sectors, Rouge's cost edge diminishes as fuel becomes a larger component of the overall cost.
The fact it is seasonal gives us great insight into the route performance. If meeting targets, it will come back as is. If not, they can change or drop without many future bookings being affected.
Exactly. The other wild card on this, and well every route right now is the drop in fuel prices...
If fuel stays where it is, or goes lower, its going to mean many routes which were marginal are now profitable... And while the dollar is about 2 cents below AC's target - fuel is well below (they forecast 90 cents its about 75/6 CAD right now(its 64 US) where they forecast... Which would be fully realized on most international routes (not this one... Bc it originates in Ontario...) And continues to trend down...
And while I might be wrong, I think a penny on fuel is worth more than a penny on the dollar purely because of the way the business is structured.