United still faces a ordspråk

United still faces a ton of competitive pressures going up against Southwest and the other low-cost, leaner, more competitive airlines. United and the other carriers still face high jet-fuel prices. That takes up a large chunk of their costs. They have cut so many costs since they went into bankruptcy. They cannot eliminate many more costs. Over time, fares will have to go up.

Southwest has to expand aggressively over the next two to three years because they've got to spread out their costs in order to keep their fares down. They have high labor costs and in order to protect their costs they have to put out more product.

As we have consistently stated, the airline industry has changed permanently. Northwest must significantly lower its costs to compete with other carriers. Many of these are legacy carriers that have already used the bankruptcy process to achieve changes in their cost structures or newer, low-cost carriers which have much lower labor and operating costs than legacy carriers.

The numbers tell the story. Year to date in 2005, the company's operating earnings improved by over $450 million, despite fuel costs that are $1.3 billion higher than last year. When United exits bankruptcy in February 2006, we will be ready to compete aggressively with the best carriers in a way that is distinctly United.

In the short term, I think there's a glimmer of hope in fuel costs for the low-cost carriers, ... Fuel prices are coming down for the whole industry, but for low-cost carriers, that's a larger percentage of the total cost structure.

Record-high fuel costs, industry overcapacity, and the growth of low-cost carriers and the fares they are able to offer are negatively impacting the financial performance of many of the flights we currently operate,

Record-high fuel costs, industry overcapacity, and the growth of low-cost carriers and the fares they are able to offer are negatively impacting the financial performance of many of the flights we currently operate.

In spite of rising costs and the carriers' desire to raise fares to cover those costs, there's going to be some real difficulty in accomplishing that. It does not look like demand is firming up at all. And therefore I see downward pressure on prices.

Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 per cent rise in jet fuel costs in the last month alone that pushed us to make this decision. We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more.

Increases in health and liability insurance costs, utility expenses, and garbage hauling fees were factored, ... Our entire nation faces increased fuel costs, which will remain uncertain. We will take strong measures to harness these costs through a thorough review of cost efficiency in every department and every division.

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The other airlines by virtue of the bankruptcy court have reduced their labor costs below where ours is today. That represents a competitive problem.

The new players have a cost structure that is on the average of about 2,500 dollars less a vehicle. That's a killer number when you're trying to get competitive. It's a lot easier to add costs than to take out costs.

I think the street overreacted to fuel costs and Y2K. But this is not to say that estimates won't come down for the first quarter. Fuel prices are even higher now and it's very difficult in short term for carriers to control that cost.

We've been concerned about the costs at DIA in the past but they have done a remarkable job in getting their costs downs to levels that make sense to Southwest Airlines,

It obviously is pointing out the fact that extreme fuel cost pressures are offsetting a lot of the progress that Continental has made on the labor cost front in the last few months, ... It highlights the problems that all of the legacy carriers are facing now with this spike in energy costs.

William Warlick

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Denna sidan visar ordspråk som liknar "United still faces a ton of competitive pressures going up against Southwest and the other low-cost, leaner, more competitive airlines. United and the other carriers still face high jet-fuel prices. That takes up a large chunk of their costs. They have cut so many costs since they went into bankruptcy. They cannot eliminate many more costs. Over time, fares will have to go up.".

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