ea93105 Posted May 22, 2020 Report Share Posted May 22, 2020 Wow, didn't expect it since the airlines have been claiming that refunding "non refundable" tickets would send them into bankruptcy. Nice surprise 1 Quote Link to comment Share on other sites More sharing options...
cedros Posted May 22, 2020 Report Share Posted May 22, 2020 Good news Quote Link to comment Share on other sites More sharing options...
sm1mex Posted May 22, 2020 Report Share Posted May 22, 2020 US carriers are mandatory to give refunds because they got bail out money from the Feds. You have to ask for it as they will try to give you an expiable voucher. Quote Link to comment Share on other sites More sharing options...
Eric Blair Posted May 22, 2020 Report Share Posted May 22, 2020 14 hours ago, ea93105 said: Wow, didn't expect it since the airlines have been claiming that refunding "non refundable" tickets would send them into bankruptcy. Nice surprise Pretty soon the airlines will be back to screwing passengers big time to make up for their losses. After the initial lower prices, look for higher prices, more fees, less services, etc. Like so many businesses, you need them more than they need you, AND THEY KNOW THIS. 1 Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted May 22, 2020 Report Share Posted May 22, 2020 No problem. No one forces you to fly. Last year United made a whopping 2.43% profit on sales. WOW are they "screwing" the public!! What about Clorox ? Do you think they are "screwing" the public? Last year Clorox made 13.67% profit on sales. Maybe General Mills? (think Cheerios) Do you think they are "screwing" the public? Last year General Mills made 12.45% profit on sales Put in context air travel is very inexpensive in today's world. 45 years ago I paid $214 for a round trip from San Francisco to Guadalajara. That included almost nothing in taxes. Last year I did the same for $426 including over $145 in taxes. One dollar from 1975 is $4.96 on today's dollars. So based on that my last ticket to SF should have cost $1061 ( not taking into account taxes) WOW DID I GET "SCREWED"! But hey if you don't like less services fly first class. In today's dollars about the same price as coach 45 years ago. 4 Quote Link to comment Share on other sites More sharing options...
pappysmarket Posted May 22, 2020 Report Share Posted May 22, 2020 Anyone who thinks a company is making excessive profits should run, not walk, to their broker and buy as much of that company's stock as they can afford. Easy money, eh? 1 Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted May 22, 2020 Report Share Posted May 22, 2020 1 minute ago, Upfront said: any company that makes $641 million net profit in a single quarter could easly drop the baggage charge Sure...they could .... but think....if baggage charges amount to more than 2.3% of the total cost of sales they would lose money if they dropped it. So if they dropped any individual revenue stream then they would have to raise base ticket prices to maintain a profit. It's just marketing.. And if you are like me and don't need checked baggage you can save money. Don't look at $ of profit look at % of profit. Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted May 22, 2020 Report Share Posted May 22, 2020 5 minutes ago, pappysmarket said: Anyone who thinks a company is making excessive profits should run, not walk, to their broker and buy as much of that company's stock as they can afford. Easy money, eh? You are 100% right Quote Link to comment Share on other sites More sharing options...
JRPJR Posted May 22, 2020 Report Share Posted May 22, 2020 56 minutes ago, Eric Blair said: Pretty soon the airlines will be back to screwing passengers big time to make up for their losses. After the initial lower prices, look for higher prices, more fees, less services, etc. Like so many businesses, you need them more than they need you, AND THEY KNOW THIS. Good Eric, You have it all figured out. Business don’t need customers. Please keep us posted on how this works out. 1 Quote Link to comment Share on other sites More sharing options...
Eric Blair Posted May 22, 2020 Report Share Posted May 22, 2020 4 hours ago, JRPJR said: Good Eric, You have it all figured out. Business don’t need customers. Please keep us posted on how this works out. I thought it might be obvious that I was speaking on the basis of any individual customer. I hope this cleared up what I meant and I'm glad it gave you the opportunity to point something out that you think I wasn't clear about. Quote Link to comment Share on other sites More sharing options...
Mainecoons Posted May 22, 2020 Report Share Posted May 22, 2020 I question whether the low price, high volume model the airlines have evolved into will return any time soon. I also remember when flying cost a heckuva lot more in constant dollars than it does now. But it wasn't like traveling in a cattle car either. An airline stock is the last thing I'd buy. If it isn't one thing it is another torpedoing the business. Remember the impact of high fuel prices? Quote Link to comment Share on other sites More sharing options...
lakeside7 Posted May 22, 2020 Report Share Posted May 22, 2020 I think many airlines are carrying to much debit and offering too much benefits to their staff...much like the various cites/states..who are bankrupt with so much pension burden...Meantime our friendly Volaris continues to screw us 2 Quote Link to comment Share on other sites More sharing options...
ea93105 Posted May 23, 2020 Author Report Share Posted May 23, 2020 Our KLM ticket from NY to Amsterdam was $250 per person roundtrip, too cheap really. Makes me think they must be paid a commission by the Dutch government which would make sense after all since most of the travel money is spent in the country. Still waiting for their refund Quote Link to comment Share on other sites More sharing options...
cookj5 Posted May 23, 2020 Report Share Posted May 23, 2020 6 hours ago, Mainecoons said: I question whether the low price, high volume model the airlines have evolved into will return any time soon. I also remember when flying cost a heckuva lot more in constant dollars than it does now. But it wasn't like traveling in a cattle car either. An airline stock is the last thing I'd buy. If it isn't one thing it is another torpedoing the business. Remember the impact of high fuel prices? Yes, I remember all the moaning by the airlines about high fuel prices. They shed rivers of tears about how they just HAD to start charging for checked baggage to offset those fuel prices. And when the fuel prices dropped, I remember how they cancelled the checked bag charges. Oh! Right! They still charge us for the bags. Gee, how silly of me to believe them... Quote Link to comment Share on other sites More sharing options...
Mainecoons Posted May 23, 2020 Report Share Posted May 23, 2020 In point of fact the fuel price crunch was very negative for the bottom line of airlines. As others note here, this is a very low margin, low profit business. IMO the low price, high volume model has not worked for the airlines and in this environment will work even less. That was the point I was making. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.