Operating Ration at 62% with the cuts that have already been made and they want to get to 55%... to me that signals that more big cuts are coming. Look at the cuts we have already seen and that only dropped the O/R less than a point. Scares the c-ap out of me.
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They will sell their mothers to get 55 and then they will cash out and disappear. Good luck to the survivors. Pirates are here.
Low OR in a capital intensive business like this is difficult to achieve, even if temporary and most certainly not sustainable without severe impacts on customers, price, safety and employee development. Those elements are cornerstone to long term success.
Up is paying the price for not dropping balls and telling wall street "you think you can do better?"