Originally Posted by
lhrsfo
And this is perfectly sensible. However, for this to be sufficient, you have also to take steps to address the reason why so much is unprofitable, whether it's cost structure, or service deficiency, and then rectify these issues. Otherwise you get sucked into a vortex of further losses and further cuts, from which you won't escape.
Indeed, I really don't think that downsizing is a good strategy. They'll begin to lose economies of scale which could cause unit costs to rise, and cutting routes and reducing connecting opportunities could also harm unit revenue. But the cash and balance sheet situation is very dire they don't have much of a choice. But I agree, you can't cut your way to profitability. They need to solve the structural issues, which are not improved by cutting routes and capacity.