The CEO of Delta Air Lines says that fares must rise 15 to 20 percent to cover fuel costs. I think he’s right.
No business and no industry can absorb massive losses forever. Eventually the cash reserves and the credit will run out.
Delta will announce its first-quarter earnings tomorrow, and there won’t be any. The company will declare a massive loss, as three of its major competitors have already done.
No business can cut costs and reduce service forever. Eventually there’s nothing left to cut, and nothing left to sell.
No business can cut salaries and lay off workers forever. Eventually, pilots will realize they can make more money as truck drivers, and gate workers will sign up at KFC.
As drivers, we can’t avoid the high price of fuel we put in our cars. As passengers, there’s only so long we can avoid the high price of fuel that goes into those jets.
And even though we passsengers have shown that we’ll endure almost any indignity for a low fare, we can’t keep the fares from rising now. Trouble is, when the low fares are gone, the indignities will remain.