FWIW.
from usatoday.com.....
Skybus loses $16 million during first full quarter of flying Skybus lost $16 million on operating revenue of $22 million during the quarter ending Sept. 30,
The Columbus (Ohio) Dispatch reports. The quarter was the carrier's first full quarter of flying. "Company officials said they expected to lose money before becoming profitable sometime next year, while some analysts said this first look provided some troubling signs for the airline," the paper writes. Skybus spokesman Bob Tenenbaum tells the
Dispatch that the results were "in line" with the company's expectations and notes the quarter covered a period in which Skybus was just beginning to fly and was in the middle of its big initial growth spurt.
But while nearly all start-up airlines are expected to lose money during their first several quarters of operation, some industry observers expressed concern. The
Dispatch writes it talked to "two airline experts (who) expressed concern that Skybus' yields -- an industry benchmark that is calculated by dividing passenger revenue by passenger miles -- have been very weak." Those yields have already prompted Skybus to act. In October, the airline scrapped three of its five West Coast flights -– flights where the longer distances did not allow the carrier to generate enough additional revenue to offset the increased fuel and other costs associated with the cross-country routes.
The
Dispatch says Skybus' passenger yield for the quarter came in at 5.08 cents. By comparison, the Dispatch says Southwest's passenger yield is 12.5 cents while the major carriers average 13 cents. "These are rock-bottom yields, especially in this age of skyrocketing fuel costs," Joseph Schwieterman, a DePaul University professor and former pricing analyst for United Airlines, tells the
Dispatch. Aviation consultant Mike Boyd also echoed concerns to the
Dispatch, saying "this is just not a very good plan, but that doesn't mean they can't turn it around by scrapping the model."