Originally Posted by
Trafalgar
I would be cautious of the "120%" of each seat sold figure. It seems unlikely that is factual, or at best a very selective use of facts.
Indeed.
To reverse the question;
What load factor would be required to turn an operating profit, if we were paying $50 a barrel for fuel (like everyone else)?
The fact remains that if it is indeed a "structural change" to the industry, rather than a cyclical one, all airlines (or at least the ones in the locale) are in the same boat. Strangely, the rest all seem to be doing just fine. That's because their cost base (fuel being the biggest part thereof) is at the appropriate level, where they can compete healthily with each other while achieving a satisfactory yield.
$8BN. That's the figure we would have as profit, without the hedge. That's in spite of our expensive non-fuel cost base.
A small number of people are responsible for losing 8.5 billion. Consequently, they have allowed a feeding frenzy by the competition, allowing them to slaughter us.