3Q 2010 Scorecard

[Thebean]

Operating Margin - Including interest payments as an expense

1. Alaska 17.5%

2. Allegiant 11.5%

3. WestJet 11.0%

4. Hawaiian 10.6%

5. Southwest 9.8%

6. jetBlue 9.2%

7. Continental 8.6%

8. Delta 8.4%

9. Air Canada 8.0%

10. Industry Avg 7.5%

11. US Airways 7.3%

12. Air Tran 5.6%

13. Skywest 5.3%

14. AMR 2.4%

[CanadaEH]

Nice work WS & AC.

[dagger]

Nice work WS & AC.

I'd say the same with your avatars

[Miles]

I don't remember the last time I saw that list without any negative numbers! Good to see!

[Seeker]

Nice work WS & AC.

Now I'm not trying to start anything here but I'm wondering about the second bag fee - if Westjet is already pretty much at the top of North American airlines for margin - why do they suddenly feel the need to charge for the second bag?

[dagger]

Now I'm not trying to start anything here but I'm wondering about the second bag fee - if Westjet is already pretty much at the top of North American airlines for margin - why do they suddenly feel the need to charge for the second bag?

1. More is always better

2. Second bag fee means fewer second bags carried, which is good for your costs

3. Integration with US alliance partner. Most US carriers, AA included, have second and even first bag fees. This is the start of harmonization with AA.

4. WS knows AC will match in some form (early next week, I'd bet, but won't speculate on details).

5. Better to condition the market now to travelling lighter for if fuel prices rise sharply as some analysts feel, better to start taking weight off the plane now

6. The only reason WS didn't have a bag fee before was that it hoped to win market share from AC, but AC never put in a domestic second bag fee, and since AC is now in better financial shape than a year ago, there is no pointing sweating AC on this point.

7. Paying out a dividend starting in January. Got to make that up if the dividend is to be sustainable.

[chockalicious]

Analyst community loves ancillary revenue. The perception of all the extra $, whether it materializes or not, give the street the appearnace that WS will go after all revenue sources and thus juice the share price.

[CanadaEH]

Now I'm not trying to start anything here but I'm wondering about the second bag fee - if Westjet is already pretty much at the top of North American airlines for margin - why do they suddenly feel the need to charge for the second bag?

What will your opinion be if/when AC does the same (which it already is on transborder and international)?

[Seeker]

What will your opinion be if/when AC does the same (which it already is on transborder and international)?

Oh yeah, I know AC will do it cause we could use the revenue but you guys are already making money, right? It just looks like a real shift in philosophy - start charging for bags and pass the money through to the shareholders as a dividend. I know this sounds good if you're a shareholder but don't you agree that it's a significant change in corporate philosophy? You see, I'm not arguing against the charge.

[Guest]

Oh yeah, I know AC will do it cause we could use the revenue but you guys are already making money, right? It just looks like a real shift in philosophy - start charging for bags and pass the money through to the shareholders as a dividend. I know this sounds good if you're a shareholder but don't you agree that it's a significant change in corporate philosophy? You see, I'm not arguing against the charge.

Making money in the airline biz is kinda like being the tallest person at a little person convention. It's pennies compared to many other industries and airlines should be doing what ever they can to maximize their revenue even when they're making money.