Why are airlines such a tough business?

American Airlines bankruptcy is 189th in US since 1978

When American Airlines filed for bankruptcy protection last week, it was the 189th time an airline in the US had gone down this route since 1978, when the government there deregulated the industry. Most of these bankrupt companies survived. But keeping an airline afloat is an increasingly pricey business as labour costs (highly specialised jobs demand higher salaries), volatile oil prices, economic recessions, low-cost competition, expensive aircraft, fear of terrorism and natural disasters from volcanic ash clouds to disease outbreaks push airlines closer to the edge.
US airlines have lost $54.5 billion over the last ten years and have failed to collectively make a profit in seven of those ten years.
DailyReport
[pictured: Finnair Airbus A330; courtesy oneworld]

x

Check Also

Dallas/Fort Worth, Iceland, Keflavik, airport, route, three, airlines, destination, USA,

Keflavik adds three links to one destination

Three airlines are launching routes between the Icelandic airport and the same destination in the US.

alItalia, Italy, airports, Milan, Rome, strike, ATC, air traffic control, May, A4E, BA, american, Delta, easyjet

Italy strike to hit air travel

Some airlines are allowing rebooking, as Italian air traffic controllers announce a strike for tomorrow.

CFM, CFM56-7B, engine, blow, explode, inspection, FAA, order, directive, Southwest, cancel, flights, safe, American, United

US airlines cancel flights to check engines

A radical measure to immediately check engines follows a mid-air explosion last week.

Finnair, tickets, hand luggage, only, Light, fare, transatlantic, routes, long-haul, low-cost, seating, USA, Helsinki, New York

Finnair launches long-haul hand-baggage fare

Its Light class fare, which includes hand baggage only, is now available on the Helsinki-New York route.

Doha, Qatar Airways, travel, flights, Latin, America, South America, Central America, oneworld, Iberia, Madrid, connect, ticket, Middle East

Qatar Airways deepens oneworld relationship

The national carrier of Qatar reaches further into Central and South America.

British Airways, BA, Iberia, American Airlines, Finnair, oneworld, transatlantic, routes, flights, basic economy, seating, rules

Transatlantic oneworld flights add basic economy

British Airways, American Airlines, Iberia and Finnair will launch a new ‘basic’ fare on some transatlantic flights.