FlyerTalk Forums - View Single Post - Alaska Air stock falls sharply on difficulties with Virgin, Horizon Air
Old Oct 30, 2017, 9:33 am
  #147  
sltlyamusd
 
Join Date: May 2003
Location: SFO, mostly
Posts: 2,204
Originally Posted by sfozrhfco
That may be what AS is doing to it but they were profitable before AS took them over. When you are a small airline in a hyper competitive market you need to offer more perks than other airlines to get people to pay you more. Remember VX started right before the financial crisis and made it on their own and sold themselves for more than any rational person thought they were worth. You can’t be much more successful than that in business terms.
VX was consistently losing money the first 5+ years they were in business and only became profitable during the past few years. Also, pretty much every US airline has reported profits over the past couple years, and VX did not have particularly large profit margins.
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