Originally Posted by
flyYX
[url]http://biz.yahoo.com/ap/070913
Good news for Midwest but revenue is still down. I wonder how Midwest is going to address the revenue problem?
That's the real problem facing Midwest and many other airlines.
Looking at the numbers released today, I continue to be amazed at how poorly the Midwest Connect side of the business is performing revenue wise. Yields have declined fairly significantly. Some of that can be explained by longer stage lengths of the flights, cancellations from crew shortages, and the fact that the Beech 1900s are still around. Also, the FRJ 328 jets aren't exactly cheap to operate, either.
During the last earnings conference call, Midwest said that Skyway lost money during the second quarter. However, the Skywest flying has been profitable from the outset. Based on what we've seen so far for quarter three, I'm expecting that trend to continue.
It's no wonder that markets like Lansing, Marquette, and LaCrosse have all been discontinued recently.