You boys usin them fancy biz-niss words again?

You bet, Mr. Hudson. Who was it complained that there wasn't no real economist around?

E.F. Hutton?

I'm tired of making the same arguments, honestly.

There is no arguing about the fact* that removing a paying PAX from a flight decreases the total revenue (and profit) possible from that flight however. Regardless of what fare they are paying.



*Nobody has perfect information, including RM, so sometimes this might not hold true for a specific PAX/flight. However for any viable competitor in the market it must be the case overall.

Go away for a day or two and look at all the fun you miss.

For those of you finding several paths to DL's justification here fail to take into consideration that DL continues to present the implied promise of upgrades for elites with those on the highest fares sitting atop the list. This promise is often ranked as the highest reason why many loyally fly DL. When DL clearly rigs the game in a manner that cuts into this promise, people will eventually select another product. And any program that permits the sale of a B fare into a Y seat 3 days out with a lower priced P fare ready for release inside 24 hours, is what I called a rigged game.

Different situation but similar example. A few years back I was shopping for concert tickets the morning they went on sale. Ticketmaster was returning less than ideal seats which I simply passed on. During the day I would occasionally search for tickets discovering that much better sections were being made available (all at the same price). So instead of selling the best seats first come-first served, TM was holding back better seats for those buying later. Any time since, when I see TM selling seats in this manner, I pass on going to the show and don't think twice about it.

If it gets to that point with DL were being a FF doesn't matter to me, I will take my $1200 and buy the best seat money can buy and not think twice about it.

Someone up in NYC buy this dude a cocktail asap!

Basic Business Sense?
 

I am so tired of hearing that encouraging frequent flyers loyalty doesn't make business sense. Many DL DMs (like me) regularly & knowingly pay a higher fare to DL because of the benefits (mostly upgrades). If that benefit is curtailed, I will start buying the cheapest fare DL or otherwise. Unless DL is operating at 100% seat load, that will cost them money.

Bubba: Your statement that you are a Delta stockholder calls into question whether you have any business sense. What an awful investment!

Thanks for the advice Fram....I bought at 7.29...about a 41% increase over 19 months. If that is underperformance in your business world, I'd like to officially apply for a job with your company.

Now I will let you return to telling us how valuable y'all are sucking up the free upgrades and how DL will shut down without you. I just bought a P fare to PHX....guess one of you is out of luck.

All the foot-stomping, prognosticating , writhing, and galvanizing doesn't change the fact that apparently there has been no mass exodus of elites, or the outflow has been matched by an influx of fresh elite refugees, or what exodus has been is still on balance revenue positive when matched against FCM sales.

I mean it appears that if anything FCM is accelarating.

Why thank you kindly. Make that a Crown or Makers Manhattan of course, straight up, with a few appropriately marinated cherries (with stems) please ;) Got to have the cherries.

After doing an IQ sampling of their frequent flyers, DL decided they could dramatically reduce FF benefits with minimal loss of customers. Those of us fell outside of the polling sample left a long time ago. For those of you still flying DL and who don't understand this post, just keep saying "Best in Class"..."Best in Class"....

+1 burn

Loss from fuel hedges was a big component of Q3 2011. I'm guessing fuel hedges helped from Q4 on....

It's not a burn until one sells it... Delta's stock could go down quicker than a young FA on her first 18 hour layover with a divorced Captain....

LOL!

Bubba get your facts straight
 

If you bought DAL 19 months ago, here are the numbers:


Friday, NOV 5, 2010, Friday, June 8, 2012, Gain/Loss %


DAL 14.26 10.38 -22.7%
S&P 500 1225.85 1325.66 +8.1%
Dow Jones IA 11444.08 12.554.20 +9.7%

According to your dates, you managed to lose when the index was positive, with considerably more risk.

You may submit that "official" application at your convenience. However, I am not likely to hire you.