Is it just me, or has anyone else seen reports that passenger traffic is at pre 9/11 levels? My problem with fares going up is: as fares go up, people start driving. If I didn't have my connection at AA, this would have been the first year in my life I would have been away from my family at Christmas because it's too expensive to fly. If it gets too high, people will not fly. The market has shown that people are not willing to pay more for the big guys. I understand that oil/fuel prices are at an all-time high (if you'll read my post, you can see that). Ask yourself why UA is bankrupt and WN is not. A better cost structure allows airlines to have lower fares and hedge fuel. WN was able the hedge fuel at near 50% to 75% less than what it costs at the pump. UA wasn't able to hedge ANY fuel. Clay - SEA Fan of smart business -----Original Message----- From: Bahadir Acuner [mailto:bahadiracuner@xxxxxxxxx]=20 Sent: Friday, October 29, 2004 7:54 AM Subject: Re: Everybody missed on this Clay, Since the oil went from $19 to $55 in almost a year, the fares didn't raise the fares in a proportional way. This is hurting them big time. The airlines did everything they could, including outsourcing some work, increasing the utilization, laying off people and reducing the salaries of the people who are still ungainfully unemployed. There isn't enough room to squeeze any more. So, this fare increase is long overdue if you ask me. Low low yields with highest oil prices in the history is a combination of death for a lot of airlines. All the majors, to a certain extend are leaner and meaner compared to 3-4 years ago. It's the oil price that's killing them. I read United's quarterly press release yesterday. They are paying $1.5 BILLION ( that's $1,500,000,000)!!! More for oil this year .. That's an outrages number. If it wasn't for this they would be reporting pretty nice profits. BAHA Fan of Ua 747 upperdecks -----Original Message----- From: Clay Wardlow [mailto:clay.wardlow@xxxxxxxx] Sent: Thursday, October 28, 2004 9:28 AM To: Bahadir Acuner; AIRLINE@xxxxxxxxxxxxxxxxx Subject: RE: Everybody missed on this Fan of fare increases, are you crazy man? The airlines need to go through a much needed diet. There is so much fat and waste at the biggies especially. This has been a long time coming. There's lots of change that needs to happen, not just in the aviation industry, but world-wide. Oil is getting more expensive. Demand is going up, supply is going down. Now we know there are other sources of energy for cars (etc), and they are becoming more popular. Is there such a thing for airplanes? What happens to the industry if fuel prices never stop going up? Fares can only go up so much before the average person can't fly. That's not going to save the airlines. Clay - SEA Fan of the maglev train they talked about on the Discovery Channel the other day. -----Original Message----- From: Bahadir Acuner [mailto:bahadiracuner@xxxxxxxxx] Sent: Wednesday, October 27, 2004 7:08 AM Subject: Everybody missed on this WN has increased some of the fares by 50% few days ago. In the day and age of $55/barrel oil prices I am hoping that this will take care of yield problems in the industry. There will be less of $99 one way special fares. BAHA Fan of fare increases so that airlines can stay afloat.