Jet Fuel is still too higher relative to Airfare.
Borrowing costs for a very capital-intensive industry have risen significantly relative to 2019.
The cost of labor has also risen with pilot shortages.
Passenger loads have only now returned to pre covid 19 levels.
Lastly, number of shares outstanding has risen significantly as well.
In my view, airfare has to...
More debt - lower airfare prices - lower load factor- higher Jet fuel costs is a recipe for disaster.
Factor in high unit labor costs thx to 6.8% Inflation, higher interest rates. and the situation
even gets worse. Even if Airfare prices rose to 2019 levels.
A perfect example of what a Zombie company is. Seeking to stay afloat and pay down debt
rather than grow...
