MYP Humanities/ DP Individuals & Societies @ IICS
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Why is the airline industry a failing industry?

Picture
Picture
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

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  • Home
  • Grade 7
    • Unit 1: How We Organize History
    • Unit 2: Early Human Communities
    • Unit 3: Ancient Meso-America
    • Unit 4: Ancient Japan
    • Unit 5: Ancient Greece
  • Grade 8
  • Grade 9
    • Unit 1: The French Revoltuion
  • Grade 10
    • Prologue >
      • Bias
      • Evaluating Sources
    • Unit 1: World War II >
      • Aftermath of WWI >
        • Causes of World War II
      • Causes of World War II >
        • Quickwrite #1: Power...
      • WWII pre-D Day
      • European Theater >
        • Topography
      • Pacific Theater >
        • Quickwrite #2: Dropping the bomb...
      • Geography: WWII
    • Unit 2: Cold War >
      • Post WWII >
        • quickwrite #3: When did it get so cold?
        • Cold War Map activity
        • Political Cartoons: Truman Doctrine & Marshall Plan >
          • Cartoon Assignment
        • CNN Cold War Documentary >
          • Comrades video
          • Iron Curtain video
          • Marshall Plan Video
          • Berlin Video
          • Korea Video
          • Reds Video
          • After Stalin Video
          • Sputnik Video
          • The Wall Video
          • Cuba Video
          • Vietnam War Video
          • MAD Video
          • Make Love Not War Video
          • Red Spring Video
          • China Video
          • Detente Video
          • Good Guys, Bad Guys Video
          • Backyard Video
          • Freeze Video
          • Soldiers of God Video
          • Spies Video
          • Star Wars Video
          • The Wall Comes Down Video
          • Conclusions Video
      • Asia >
        • Korean War >
          • Korean War Video
        • Vietnam War >
          • Vietnam War Timeline
          • Vietnam War Video
          • Quickwrite #4: Images of the Vietnam War
        • Laos & Cambodia >
          • Refugee crisis
      • Latin America >
        • Country Brief
      • Africa >
        • Country Brief
      • Collapse of the Soviet Union >
        • Fall of the Soviet Union
      • Cold war summative assessment
    • 1st semester final exam
    • 1st semester reflection
    • Unit 3: Global Interdependence >
      • World Religions
      • Globalization
    • writing center >
      • Research Paper
  • Grade 11
    • DP Econ y1 >
      • External Assessments >
        • Assessment Strategies
      • Internal Assessment
      • Unit 1.1 - Microeconomics: Competitive Markets >
        • In the News
        • Committee Memorandum
        • Guns vs. Butter
        • Short Answer Questions
        • Worksheets
        • Higher Level
      • Unit 1.2 - Microeconomics: Elasticity >
        • In the News
        • Elasticity Questions
        • worksheets
      • Unit 1.3 - Microeconomics: Government Intervention >
        • In the News
        • worksheets
      • Unit 1.4 - Microeconomics: Market Failure >
        • In the News
        • worksheets
      • Standard Level 1.5*
      • start Internal Assessment
      • Unit 1.5 - Microeconomics: Theory of the Firm & Market Structures (HL only) >
        • In the News
        • Backwards Test
        • Perfect Competition Questions
        • Worksheets
      • The Airline Industry Sucks
      • Unit 1 review
      • 1st semester reflection
      • Unit 2.1 - Macroeconomics: The Level of Overall Economic Activity >
        • In the News
        • Tale of Two Countries
        • Quickwrite: GDP
        • worksheets
        • Food for Thought
      • Unit 2.2 - Macroeconomics: Aggregate Demand & Aggregate Supply >
        • In the News
        • worksheets
      • Unit 2.3: Macroeconomic Objectives >
        • In the News
        • Inflation & unemployment
        • worksheets
      • Unit 2.4 - Macroeconomics: Fiscal Policy >
        • In the News
        • Quickwrite: Money
        • worksheets
      • Unit 2.5: Monetary Policy >
        • In the News
        • worksheets
      • Unit 2.6: Supply-Side Economics >
        • In the News
        • worksheets
    • DP Geo Y1 >
      • Geography Monkey
      • Intro Ibdp Geo
      • Course Structure
    • DP History y1
  • Grade 12
    • DP Econ y2 >
      • External Assessments >
        • In the News
        • Assessment Strategies
      • Unit 3.1: International Trade >
        • Worksheets
        • HL Comparative vs. Absolute Advantage Problem
      • Unit 3.2: Exchange Rates >
        • In the News
        • Exchange Rate Questions
        • worksheets
      • Unit 3.3: The Balance of Payments >
        • In the News
        • worksheets
      • Unit 3.4: Economic Integration >
        • united we fall documentary
        • In the News
        • worksheets
      • Unit 3.5: Terms of Trade (HL only) >
        • In the News
        • IB Examiner
        • worksheets
      • Unit 4.1: Economic Development >
        • In the News
        • worksheets
      • Unit 4.2: Measuring Development
      • Unit 4.3: The Role of Domestic Factors >
        • In the News
        • Questions
        • worksheets
      • Unit 4.4: The Role of International Trade >
        • In the News
      • Unit 4.5: The Role of Foreign Direct Investment >
        • In the News
        • worksheets
      • Unit 4.6: The Roles of Foreign Aid & Multilateral Development Assistance >
        • In the News
      • Unit 4.7: The Role of International Debt >
        • In the News
      • Unit 4.8: The Balance Between Markets & Intervention >
        • In the News
        • worksheets
      • Unit 4 Assessment Survey
      • Internal Assessment
      • 1st semester reflection
      • Review >
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        • paper 3 Practice
    • DP Geo Y2 >
      • Sheard
      • Reviewing Year 1
    • DP History y2 >
      • Resources