Originally Posted by
LegalTender
Correct. We all paid more to fly one mile than we did last summer. But adding capacity faster than demand is growing leads to price-slashing. A revenue quandary that impacts "fee free" carriers most worries the Street.
AS/VX has significantly increased service over the past year or so (DAL, SAN, and SJC intra-California, west and midwest, BWI and EWR), much of which is in direct competition with WN. Too early to say how this will play out long term, but it has put pressure on fares. Much of the new AS service is provided by OO on new E175's, with significantly lower cost structures than WN, suggesting stiff price competition could continue for some time. In addition, AS just launch a Q4 double mile promotion for most of the newer destinations.