CO Reports June performance
Jul 2, 2008, 8:20 am
#1
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CO Reports June performance
All segments down for load factor... not a good sign
http://biz.yahoo.com/prnews/080701/latu555.html?.v=4
http://biz.yahoo.com/prnews/080701/latu555.html?.v=4
Jul 2, 2008, 8:29 am
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All segments down for load factor... not a good sign
http://biz.yahoo.com/prnews/080701/latu555.html?.v=4
http://biz.yahoo.com/prnews/080701/latu555.html?.v=4
Those Pacific routes look like they're taking a hit...
Jul 2, 2008, 8:52 am
#3
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I can't help but wonder if that's due to the frequencies (or lack thereof).
When I flew to ICN from IAH, I wouldn't have minded doing the IAH - NRT - ICN route, with the bulk of my travel done on CO metal. Unfortunately, I couldn't find anything within my travel schedule, so I ended up flying IAH - LAX on CO, and LAX - ICN on KE.
My return trip, however, was ICN - NRT - IAH, with NRT-IAH leg operated on CO metal.
When I flew to ICN from IAH, I wouldn't have minded doing the IAH - NRT - ICN route, with the bulk of my travel done on CO metal. Unfortunately, I couldn't find anything within my travel schedule, so I ended up flying IAH - LAX on CO, and LAX - ICN on KE.
My return trip, however, was ICN - NRT - IAH, with NRT-IAH leg operated on CO metal.
Jul 2, 2008, 9:03 am
#4
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Pacific route didn't do worse than Atlantic.
Capacity (in terms of ASM) was down 6.6% because they've cut the daily 764 HNL-NGO. By next spring there will be EWR-PVG, and that'll add a lot of capacity.
Load factor was down 3.1 percentage point, same as Europe.
The question is yield. Fuel prices are higher, fares are higher, fewer people flying. LF has to go down. Only question is if the higher fares charged per passenger is enough to offset the higher fuel cost.
Capacity (in terms of ASM) was down 6.6% because they've cut the daily 764 HNL-NGO. By next spring there will be EWR-PVG, and that'll add a lot of capacity.
Load factor was down 3.1 percentage point, same as Europe.
The question is yield. Fuel prices are higher, fares are higher, fewer people flying. LF has to go down. Only question is if the higher fares charged per passenger is enough to offset the higher fuel cost.
Jul 2, 2008, 9:03 am
#5
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I'm not as worried about LFs when I see numbers like these:
RASM continues to go up. That is good for the carrier. And the empty seat next to you (or not getting stuck in a middle) makes the folks paying those higher fares a little less crazy about that. Of course, the CASM probably went up more than that because of the fuel costs, so it still isn't necessarily profitable, but seeing the RASM going higher is a good sign overall.
Code:
May 2008 year-over-year consolidated RASM change 7.2 Percent
May 2008 year-over-year mainline RASM change 6.4 Percent
June 2008 estimated year-over-year consolidated
RASM change 4.0 - 5.0 Percent
June 2008 estimated year-over-year mainline
RASM change 3.5 - 4.5 Percent
Jul 2, 2008, 9:07 am
#6
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My observation - there is definitely a reduction in IAH-DCA traffic (with better upgrade chances).
Europe is weak, with the weak dollar.
Europe is weak, with the weak dollar.
Jul 2, 2008, 9:29 am
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Jul 2, 2008, 10:20 am
#9
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I am traveling to Europe later this month. The bookings going East bound in late July are weak, but coming west bound in late July - they appear strong.
Most European's take their vacation late July and August - so flights are fuller coming to the USA at that time.
European's big into FF programs like us here are likely traveling on their own national carrier. But those most sensitive to cost may be traveling on US airlines with likley bigger discounts.
Fares are definitely higher for RT flights from Europe than from the USA.
Most European's take their vacation late July and August - so flights are fuller coming to the USA at that time.
European's big into FF programs like us here are likely traveling on their own national carrier. But those most sensitive to cost may be traveling on US airlines with likley bigger discounts.
Fares are definitely higher for RT flights from Europe than from the USA.
Jul 2, 2008, 10:38 am
#10
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>>>>I can't help but wonder if that's due to the frequencies>>>>
For me, personally, it's their fares. Delta and American have my last 5 trips for the year because of an average $160 fare difference.
For me, personally, it's their fares. Delta and American have my last 5 trips for the year because of an average $160 fare difference.
Jul 2, 2008, 10:55 am
#11
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Yep, so true. While the weak dollar usually means Americans don't travel abroad, many international travelers will come to the US. I'm in NYC almost weekly and I have never seen it this full of international travelers before. This almost seems like the first really big year for foreign travelers to come to the City after 2001. I personally think it's awesome to see.
CO might have gone down on RASM to the Pacific but they went up across the Atlantic. Overall, the numbers didn't look too bad to me considering the slow down in the economy and travel.
-RM
CO might have gone down on RASM to the Pacific but they went up across the Atlantic. Overall, the numbers didn't look too bad to me considering the slow down in the economy and travel.
-RM
Jul 2, 2008, 11:09 am
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Good point. June 2007 was a very good month with a very aggressive schedule from CO already. While June 08's LF dropped 3.1 percentage point, they still get a 6.5% increase in RPM for Atlantic. Tha't pretty impressive.
Jul 2, 2008, 12:36 pm
#13
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