tcook052

NEW YORK, Feb 1 (Reuters) - Continental Airlines (CAL.N: Quote, Profile, Research) said on Tuesday it expects to lose about $10 million to $12 million per month in revenues from a recent round of price cutting of domestic fares.

http://www.reuters.com/financeNewsAr...toryID=7505623

otralot

I have noticed some amazing to us depressing to CO fares lately. From the DC area it seems they are coming close to matching Fly I out of IAD. Don't understand why they feel they need to match fares on an airline that is struggling to gain a hold on the consumers imagination.

umguy

Well at least they didn't blame in on Sept 11. I can't believe we still hear that one from time to time.

vincom

Maybe they are trying to make us feel guilt?

OMG such low fares! Continental is going to make less money I feel bad!

They could put those coffee tins at the counters at checkin and atthe gate to collect donations to help make up the difference they are lossing!


-Vincent

whiteknuckles

I haven't noticed any fare cuts.

tw747

Continental is still getting top dollar from IAH to YYC ($560 +) for a 4 hour flight. Other airlines are running fares from $316 (AA) to ($375 UA). I hope they don't drive CO FF away.

chasbondy

They need to say something, because it way beyond the capacity of most to understand that there wont be any profit with $48 a barrel oil, but you'll still be demanding your milk and cookies

Renard

CO can rest easy as they are still gouging Houston

jaguar

I fly the LAX-EWR transcon and they were able to sell a number of $2K FC seats which now go for $1K. Cutting their profit in half doesn't help the bottom line.

Tod E Tosser

I'm guessing they weren't selling all that many at $2K, or they wouldn't have dropped the price. I still got my 3hr EUA last Friday on the 767 with a U fare.

jaguar

Glad to see you got your EUA. I'm a Platinum and it's very tough trying to get a battlefield uprade on this route.

otralot

This lines up more closely with DL's walk up FC fares. Actually abit cheaper so was this OW or RT? I think CO's strategy will be to find the price point where all FC or at least most FC seats sell, That would make the ultimate sense.

You could charge 2K for a ticket a few buy or 1K and sell 10 tickets. Which produces more revenue? Since it costs no more to fly the seat and UG passnengers don't increase $'s maximizing revenue must always be the goal. I can think of plenty of business travelers willing to pay a reasonable price for a FC ticket.

Actually, CO's claims of being a premium airline are more true if they actually sell rather then give away the product. Even if they sell for cheaper than the past,

RobOnLI

I think you are forgetting the many more thousands of $'s elites bring to an airline because of upgrades. Sell 12 FC seat for $1K more to a non-elite (*maybe* a one-time flyer), or sell 3 FC seats for $2K (net change of $6K) and upgrade 6 high-tier elites who spends thousands every year flying on an airline?

I think it's fairly safe to say (99.999%) that those six upgraded elites are worth way more than $6K to an airline that upgrades them and keeps them happy.

-RM

chasbondy

I disagree. Someone on this board said they obtained Plat for less than $2,000. I dont see how its possible, but assuming that person was truthful, a Platinum that obtained status for under $2,000 is doing CO no favors, as they are just leaking oil with those types of "loyal passengers" who constantly harangue about upgrades, food, wine, silverware, etc

dlen111

im gold and figure i spent at least 3.5K getting it (and it was on segments).

70 segments/4 segments per trip X $200 (conservative- some higher some lower) per trip. The only thing this does not acount for was 3.5 trips that were booked in Z. even then, those fares were never more than $700.

CO says im one of their best customers, yet i beg to differ. there are some of you out there that spend more $$$ than i do in a year on two flights from CLE to EWR.

i have gotten used to paying for FC if i really want it. the free upgrades are nice (and i must say, i get them much more than most other FT'ers), but i chose to fly CO for other reasons as well. if they want to sell every seat up front, more power to them. it may get me to fork over some more cash to gaurantee a seat rather than cry and sprint for NW. especially if the price goes down enough to create the demand they're looking for.