Comments on: This is all an airline CEO sees when you complain about baggage fees

By: Sinep

Sinep — Sat, 16 Jan 2010 12:29:57 +0000

Only a fool uses short-term thinking when valuing a stock. Savvy investors weigh all factors, including long-term dynamic effects, to arrive at a price. In other words, when a fee increase is announced, the wise investor will see the obvious boost to short-term revenue, but will also weigh the expected long-term effect on passenger load (driven by customer satisfaction), etc. If the stock price rises when the announcement is made, it indicates that investors are betting it was a good move not just short-term, as you claimed, but long-term as well. This doesn’t mean they are always right, but it does mean they like what happened and what it means for the company profits.

I believe airlines aren’t charging enough for bags and many other ala carte services. I hope they will add more over time to help the business model and increase profits, stabilities, and the quality and range of services offered.

By: ShortWoman» Blog Archive » I can’t believe he said that.

ShortWoman» Blog Archive » I can’t believe he said that. — Thu, 14 Jan 2010 22:45:24 +0000

[...] provided health insurance to 3000 families; Junk Insurance Tax; a picture worth a thousand words on checked baggage fees (between the airlines and the TSA are they actively trying to get me to avoid [...]

By: Antonio

Antonio — Thu, 14 Jan 2010 07:44:11 +0000

Interestingly, Southwest’s stock ticker went up right around the same time as UAL’s. Those were the smart investors.

By: That’s it.

That’s it. — Thu, 14 Jan 2010 04:02:19 +0000

[...] Don’t think so? Click here for a good example, if you somehow still need one after the recent economic meltdown. [...]

By: Diane

Diane — Thu, 14 Jan 2010 01:50:51 +0000

I agree, it’s all about $. The problem is that if many of us stop flying much because of this, they are going to have even less fuller planes. Hubby and I are talking about driving this summer to avoid the hassle and expense to fly. Normally, we fly 2-3 times for personal reasons a year. Long-term, this could be a problem for the airlines. Those with families of at least 3-4, this is a considerable expense to put up with.

By: elizabethdehoff (Elizabeth DeHoff)

elizabethdehoff (Elizabeth DeHoff) — Thu, 14 Jan 2010 01:47:52 +0000

Twitter Comment

Ha, good point. RT @upgradetravel: This is all an airline CEO sees when you complain about baggage fees [link to post]

- Posted using Chat Catcher

By: The Amazing Spider-Ads

The Amazing Spider-Ads — Thu, 14 Jan 2010 01:46:21 +0000

Whatever, as long as the airlines continue to be bailed out like clockwork by the government they can do nothing that’ll make them losing travelers hurt enough to stop doing it. The baggage fees were supposed to be for increased fuel costs, but they didn’t go away when fuel costs plummeted.

Of course you know all this means is people will continue to sneak bigger and bigger carry-ons to their seats.