More is Less?

In the interests of fairness it seems only right to bring you news of another US start-up carrier who is not yet enjoying the 'P' word. Skybus, the 'ultra-low fares' airline lost a little $16 million in the quarter that ended 30 September. Well you might be thinking, they are new and there's plenty of room for improvement. Not quite the case as their revenue for the same period was $22 million. Add to this the fact that their load factor was 79% and it's clear that they are in a bit of tight one. Given that some of their fares start at $10 it could be a case of the more people they carry the more money they lose.