Money & Economics

[redpoint5]

Airlines not smart enough to secure fuel contracts when prices are low should go out of business. It's what Southwest does (and I'm sure plenty of other airlines). I mean, what special sauce do other airlines have that allow them to weather higher fuel prices?

 

[bigredfish]

#5 not quite like the others, but yeah

Bond yields are going up - BAD
Interest rates are stuck but generally follow the 10 yr Bond Yield- Also BAD

 

[bigredfish]

Airlines not smart enough to secure fuel contracts when prices are low should go out of business. It's what Southwest does (and I'm sure plenty of other airlines). I mean, what special sauce do other airlines have that allow them to weather higher fuel prices?

A very good friend is a mid level muckety muck at SW.

They're feeling it and prices are going up across the board for seats across every single major carrier. YOU are paying for it.

No airline was hedged for 2X-3X fuel costs

 

[bigredfish]

Airlines not smart enough to secure fuel contracts when prices are low should go out of business. It's what Southwest does (and I'm sure plenty of other airlines). I mean, what special sauce do other airlines have that allow them to weather higher fuel prices?

 

[David L]

For some reason, I thought so too... googled it, turns out there's lot's of aluminum...

View attachment 243102

Yeah, under my hood, radiator and heat shields are aluminum but that is not much metal, no aluminum block here. Also, no aluminum wheels, went with steel, can't afford the aluminum ones

I see the new Hurricane engines have aluminum blocks, hmmm, also passed on that upgrade. Was a bit mad they took away the Hemi, but they quickly brought it back the next year due to all the backlash, haha...

Back in the day, aluminum blocks Sucked due to over-heating. Guess they fixed that...

But I live in the past and watch Faux News, lol, hahaha

 

[David L]

I read today that interest rates are going to come down.
A few minutes later I read that interest rates are going to go up.

So add a #5 to that list that interest rates will go up, or they will go down.

A throw of the dice...

 

[David L]

#5 not quite like the others, but yeah

Bond yields are going up - BAD
Interest rates are stuck but generally follow the 10 yr Bond Yield- Also BAD

Good for me...kinda like when gas prices go down, good for me bad for gas industry...guess I am like Trump a Nationalist, me first

If the rich temporally suffers no big deal, but if we suffer, big deal...

I am starting a new movement, MACF (Make American Citizens First) haha

 

[David L]

Airlines not smart enough to secure fuel contracts when prices are low should go out of business. It's what Southwest does (and I'm sure plenty of other airlines). I mean, what special sauce do other airlines have that allow them to weather higher fuel prices?

Agreed, I don't buy they went out of business due to fuel prices, sure that was a factor why they went broke at the end but not the reason they failed...It is hard in any industry to compete with the Big players. Walmart and Amazon are good examples, many, many small mom-and-pops went out of business because of these giants. They were squeezed out.

Was hoping SW would of continued to hold out and not assign seats. Kinda like theaters now a days, I am not a fan for assigned seats, first come first serve baby, now it is first online to buy the seats first. Dang kids, haha I miss rushing in a Theater to grab the best seats first, haha

 

[David L]

While United expands their seating...



Many people do not know, its the business class flyers that pay for the flights, not coach. Coach seats are only for balancing the plane . Very little money/profit is made in coach, this is why small airlines struggle. Anyone in the industry will tell you there will come a day where only business flights will be available and coach will be a thing of the pass. But they have been saying this for many years so who knows...

 

[David L]

Dang, too many post, I will shut up, hahaha

I love getting my morning IPCAMTALK fix...lol

 

[bigredfish]

LOL

 

[bigredfish]

The markets are broken.
If you lived through 1999-2000 or even 2008-2009 you saw these crazy unjustified swings right before it all came crashing down.

 

[bigredfish]

Got it!

 

[bigredfish]

Who's going to tell him credit card spending being UP isn't really a good thing?

 

[redpoint5]

Many people do not know, its the business class flyers that pay for the flights, not coach. Coach seats are only for balancing the plane . Very little money/profit is made in coach, this is why small airlines struggle. Anyone in the industry will tell you there will come a day where only business flights will be available and coach will be a thing of the pass. But they have been saying this for many years so who knows...

The problem is that routes need daily, or multiple flights per day. There aren't enough business customers to fill an entire plane... so you fill in the rest with coach, which is still mildly profitable.