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Their problem is that every week that goes by they are less profitable and costs are set to rise much, much higher which will squeeze them further— especially as competitive forces batter them from all sides driving down yields further. If an economic downturn hits next year, they may well have to cut the dividend and batten down the hatches. Yes, most of their problems are self induced. They didn’t need to be in the position they are in now but being in denial about the problems at Horizon was not a wake up call. They haven’t even come to start to think about the problems with the Virgin network and how to not make that a weight around their necks.

All is not lost and management may wake up and do something. The earnings call did not prove that to be the case. They are still surprised people are not overpaying and flocking to the amazing VX/AS entity which is the best thing to come to California since the invention of the internet. They are in a weak position and by floundering they are making it easy for competitors to hit them while they are down.