Take a look at this. It explains very easily why we are seeing the steep fare sales that are needed to get people back on airplanes. The airlines simply cannot afford it. Its a true catch 22. Get people on board and watch you break even load factor fall further, or keep fares high and watch people stay away?

http://www.forbes.com/2001/11/06/110...ahoo&referrer=
Company Break-Even Load Factor (pre-9/11) Break-Even Load Factor (post-9/11)
American Airlines (nyse: AMR - news - people) 74% 85%
United Airlines (nyse: UAL - news - people) 84 96
Delta Air Lines (nyse: DAL - news - people) 75 85
Southwest Airlines (nyse: LUV - news - people) 57 65
US Airways (nyse: U - news - people) 76 88
Northwest Airlines (nasdaq: NWAL - news - people) 81 90
Alaska Airlines (nyse: ALK - news - people) 67 75
Continental Airlines (nyse: CAL - news - people) 67 77
America West Airlines (nyse: AWA - news - people) 79 88

96%!?!?!?!?!? United needs 96% just to break even? No wonder Goodwin thought they'd run out of options by next year...

editied to remove article, please click the link

[This message has been edited by duxfan (edited 11-07-2001).]