I guess my question is ... CO has already been through BK and thats how they streamlined their operation. With BK, before Oct that is, both DL and NW will be able to shed their pensions and probably obtain more cuts from the unions. Gas prices will always be variable, but they will have lowered a major part of their fixed costs. It will be interesting to see how this all plays out... I predict DL BK the week after Labor day... and NW BK by the end of Sept.

I guess my sarcasm wasn't obvious enough.

I don't think that they are competing aggressively at all. I was looking at flights from MAF-HOU, and WN was at least $20 more than CO, and IAH is a lot more convenient for me, not to mention safer.

I have my elite for next year, and I would like to fly WN a bit more to get the RR certificate, but I just can't bring myself to get on one of their planes.

I am not sire where the saftey information comes from but if SW is getting $20 per ticket and paying less for fuel then they are in fact doing better then CO>

guess not... I usually detect sarcasm.

Only there it would be "Fuel costs are like shark attacks: everyone's susceptible, even musclemen like Continental Airlines. But, first, this message..."

If I remember correctly, most of Southwest's fuel hedges expire relatively soon. Anyone know for sure?

And once that happens, at least ONE component of cost is more level.

Not exactly. WN will enjoy a very large cost advantage next year and smaller, but still substantial, advantages through 2009.

http://phx.corporate-ir.net/phoenix....041&highlight=

Interesting. These two positions seem to be the offspring of radically different ideologies. On one hand, the anti-oil company notion of capping their profits. On the other, the environmentally unfriendly desire for the proliferation of oil refineries.

With regard to your suggestion of a profit cap, may I (hypothetically) inquire as to what industry and, perhaps even more specifically, what business you work in? Because I'm sure you'd agree that those profits should be capped as well.

I hate expensive gas. But sometimes we need very loud alarm bells and red flags to warn us that it is a very finite resource. I suppose that's the silver lining with regard to our petroleum predicament.

On topic . . . CO will most certainly survive the year. And, in all likelihood, many years to come.

I agree with the first statment, but after the year end my crystal ball gets a little cloudy. Once apon a time (and it wasn't that long ago) Delta was considered to be the big gorrilla in the airline industry due to it's large cash reserves.

One can only guess what's gonna happen to fuel prices, and according to the National Hurricane Center:

"NOAA Raises the 2005 Atlantic Hurricane Season Outlook,
Bulk of This Season's Storms Still to Come"

This is extra bad news since they've already used up the bulk of storm names for 2005, there's only 8 names left!

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Don't get me wrong...I feel like some sort of profit cap is only needed as a temporary measure. Alot of gas companies are profiteering and that is just wrong. Case in point...the day after the hurricane there was no shortage of gas, the true shortages won't show up for another week or so, and gas jumped up by 60 cents easily here in KC. That is simply playing on peoples fears to get more money.

I'm not asking for oil refineries to be built everywhere either, but alot of people don't understand that we barely had enough refineries before the hurricane, and many more don't know that the last refinery was built something like 25 years ago. We don't have an oil shortage, we have a lack of means to turn oil into useful products. If we can eliminate some of the red tape and make it a bit easier and more worthwhile to build a refinery or two it would greatly benefit us.

To get back on the topic of CO...while the initial shock of Katrina well hurt the airlines, CO may actually see a long term gain. With all the ports along the gulf destroyed business is going to shift to Houston and other Texas ports which of course comes with business travelers.

All I can say is that I hope things in NO get under control soon.

Matt

Is it really profiteering? I think it's just basic ECON 101 and supply & demand. There's a decrease in supply (partly a real decrease, partly perceived) and gas stations can price a gallon at $3.50 and still sell all of their gas. Why shouldn't you be allowed to sell gas at whatever price you want if people are still buying it?

If you're so angry that they make so much money off of you, stop buying their gas.

You sell a product based on what people will pay for it, not what it costs you.

Case and point: ~150 transcon fares.

I'm not really angry because I work from home and don't have to do alot of driving....and btw I have yet to fill my tank since the hurricane...lol.

Trust me I understand supply and demand very well...although the Republican in me thinks you should sell at the highest price people will pay, there is a part of me that feels it is just very wrong to capitalize on a tragedy like this.

You sell a product at the price(s) which will enable you to sell the amount you want for the highest profit (or loss in the case of airlines). $150 are used to fill potentially empty seats, however probably overused.