Originally Posted by
TechBoy
Sounds like VX has a number of flights that are not even meeting their variable costs. Cannot be a good sign. I wonder what their cash burn rate is.
At least they are now cutting back the unprofitable flights and focusing more on the ones that make them the most cash. That'll help reduce the burn rate during this period of oil price insanity.
Focusing on highly profitable routes is part of their core business model. I guess they mis-calculated some routes and/or oil prices changed the equation on them.