Why is the airline industry a failing industry?
How do airlines make money off a plane? Say a plane costs around 300million, I read somewhere airlines only profit around $6 per passenger. No profit?
The airline industry is historically not a very profitable industry. Average net margins (Net being after all business expenses are paid) are usually under 5%. It's very competitive, so a company can't just charge 20% more than the next one without offering something unique for it - and most people that buy plane tickets care more about pricing than anything else.
some other articles to consider:
http://freakonomics.com/2011/06/24/why-do-airlines-always-lose-money-hint-its-not-due-to-taxes-or-fuel-costs/
http://www.npr.org/sections/alltechconsidered/2016/08/09/489355923/why-the-airline-industry-could-keep-suffering-system-failures-like-deltas
http://www.investopedia.com/stock-analysis/031714/why-airlines-arent-profitable-dal-ual-aal-luv-jblu.aspx
http://www.economist.com/blogs/economist-explains/2014/02/economist-explains-5
The airline industry is historically not a very profitable industry. Average net margins (Net being after all business expenses are paid) are usually under 5%. It's very competitive, so a company can't just charge 20% more than the next one without offering something unique for it - and most people that buy plane tickets care more about pricing than anything else.
some other articles to consider:
http://freakonomics.com/2011/06/24/why-do-airlines-always-lose-money-hint-its-not-due-to-taxes-or-fuel-costs/
http://www.npr.org/sections/alltechconsidered/2016/08/09/489355923/why-the-airline-industry-could-keep-suffering-system-failures-like-deltas
http://www.investopedia.com/stock-analysis/031714/why-airlines-arent-profitable-dal-ual-aal-luv-jblu.aspx
http://www.economist.com/blogs/economist-explains/2014/02/economist-explains-5
