Why The Airline Business Is Broken

Passenger airlines are a crucial industry in the global economy, but the sector is also extremely volatile. Running a passenger airline is an asset-intensive industry with narrow profit margins. Despite the risks, the industry has experienced some periods of consistent growth, which can lull investors into a false sense of security. Watch the video above to learn whether investors should steer clear of the sector and why passenger airlines struggle to stay profitable.
0:00 - Introduction
1:35 - Industry shocks
6:16 - Business models
8:28 - Deregulation and consolidation
12:55 - Industry outlook
Billionaire investor Warren Buffett once called himself an “air-o-holic” because of how tempted he is to invest in commercial airlines. But he learned the hard way, twice, that the industry can be a risky bet.
Airline stocks have been on a wild ride since the beginning of the pandemic, which shows just how volatile the sector can be.
“It seems that airlines once or twice a decade are hit with these really hard-to-process exogenous shocks, whether it’s something like 9/11 or the Great Recession,” said Adam Gordon, managing director and partner at Boston Consulting Group’s Airline Practice.
The passenger airline industry is already asset-intensive, with narrow profit margins.
Despite the risks, the industry has experienced some periods of consistent growth. Airlines saw big growth in profits for about a decade prior to Covid, which analysts attribute to the airlines restructuring post-9/11.
These periods can lull investors into a false sense of security. In 2017, the CEO of American Airlines said he was confident the business was never going to lose money again.
Airline stocks may be appealing to investors because the industry is crucial to the global economy.
“If you just step back and you think about what service airlines are offering, they’re putting you in a metal tube, taking you up to 40,000 feet, and transporting you in relative or absolute comfort at hundreds of miles an hour to get from point A to point B. And if you think about the substitutes for that service, like, there really aren’t any,” said Gordon.
“So it’s kind of surprising to me that an industry that delivers that kind of a service and does it with an absolutely impeccable operational and safety record is able to come under such pressure,” he added.
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on Twitter: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Subscribe to CNBC PRO: cnb.cx/2NLi9AN
#CNBC
Why The Airline Business Is Broken

[@FGOKURULES]

_We Privatize the _*_Gains_* _ And Socialize the *Loses*_ That was hitting the nail on the head right there!!! Modern Day Business tactics... Truly underrated comment.

[@agisler87]

Agreed. Anyone who thinks we have a free market is delusional.

[@Private-GtngxNMBKvYzXyPq]

There’s a reason why the game Monopoly usually ends in bankruptcy. Even the “winner” theoretically loses because there’s no remaining source of revenue.

[@mvpfocus]

@@Private-GtngxNMBKvYzXyPq Great analogy. I had been trying to find a way to explain why the increasing wealth gap will eventually crash the economy, and the game Monopoly is it. If a few individuals continue to siphon outsized wealth out of the economy, never pay taxes, and the wage for everyone else continues to fall to inflation... eventually no one will have any money left to spend back into the economy, and even the wealthy will be left with no one to work for them and nothing left to gain. It just takes a lot longer to crash the system, in practice, because there are so many other moving parts, as well as the fed moving money around like it's no tomorrow. But, we're already well on our way there, and the rise of alternative currencies may just push the fiat system right over the edge.

[@vinaybhat7670]

So u mean they won't pay taxes on profit??

[@maxsmart99]

@@vinaybhat7670 There’s too many ways to avoid taxes

[@Mesozoic_mammal]

Short term answer: Yes Long term answer: Still yes. Low margins, high competition, hardly any moats.

[@macnguyen9414]

And ton money from goverment around word. They wont let national airplane gone to bankcrupt. Make they look bad

[@hermeslein6614]

China defeat USA as the most richest country wahahaha

[@edh615]

Competition? hahahahahah

[@jarednovel]

Covid did not mess up the airlines industry,,,,,Fauci did by funding the lab

[@giovannirafael5351]

But it wasn't a yes or no question(?) The title was why airlines struggle to stay profitable.

[@joser1853]

I do find the airline industry fascinating. It runs on razor thin margins, but it's so necessary.

[@TheBooban]

Therefore most airlines are national state airlines, esp. the very successful ones. Countries which privatized got eaten up by the budget airlines only taking the most lucrative routes and all competing against state airlines with unlimited funding. It’s completely stupid western countries allowed access to them.

[@WPaKFamily]

@@TheBooban true

[@johnsamuel1999]

@@TheBooban the national airlines should exist but the private airlines must be allowed to do so as well

[@dorkanderson4963]

American airlines are kinda garbage.

[@jarednovel]

They have to run on razor thin margin to make your ticked affordable

[@VictorMartinez-zf6dt]

I don’t buy into the narrative that we have to bail them out. And if they fail they fail, but in all likelihood they’ll go into some sort of restructuring and reorg in order to be more profitable. If we keep socializing the risky behavior through bailouts and subsidies, we legitimize that behavior and screw up the incentives.

[@TheBooban]

Kinda agree, but I think short terminism is in built into this capitalist system. They can’t help but gut themselves for short term profit. You would end up with airlines constantly in bankruptcy and highly dysfunctional.

[@shanewillbur1325]

@@TheBooban That's what we need to have happen. They need to keep going into bankruptcy until a robust business model is hashed out. Constantly bailing them out isn't doing them anygood. As well as aircraft development stagnation. There needs to be competition. We need the concords brought back, competition on comfort and spaciousness rather than gutting value of service.

[@nikobelic4251]

@@shanewillbur1325 the Concorde was removed from service because it made no money. If you want 100% free market and no bailouts you are going to get endless 737s and never see a supersonic aircraft ever because they simply aren’t very profitable

[@adamp9348]

@@shanewillbur1325 Concord failed (and I use that term strictly economically - it was a MARVEL of engineering and one hell of a ride) because of free market. The plane itself was built by a nationalized joint venture (France & UK). There IS competition right now - consumers have just proven time & time again to value price over services.

[@jonathanlloyd1824]

@@adamp9348 ..... which is funny. Consumers love to complain about all the "fees" airlines charge, making a $100 ticket $250. But we also complain about lack of service, legroom...We can't have it both ways. I do miss the regulated days. All inclusive, comfortable seats, polite staff and great meals. Unlike say local transportation (automobile, bus, bike) that is necessary for daily life. Flying in a luxury and a privilege. We can't forget that.

[@dvdragon]

How do you turn a billion dollars into a million dollars? Start an airline.

[@nikobelic4251]

It’s actually “How do you become a millionaire. Start with a Billion Dollars and start and then start an airline”

[@dvdragon]

@@nikobelic4251 Right.

[@RsOnTheStreetS]

like Trump

[@nikobelic4251]

@@RsOnTheStreetS yeah But the quote is from Richard Branson

[@robertcurry6413]

Invest in pot stock

[@johniii8147]

Airlines are one those industries you have to trade the stock in and out of the market a lot to make any money. Buy at the bottom and get out when you've made a nice profit before they hit the next turn down. Highly cyclical.

[@zunedog31]

Easy, right?

[@yarharyar]

At the end of the day there's only one rule in trading.

[@h1inc816]

American Airline (AAL) dropped to $19 a share today which is a strong buy. Looking to sell at $19.50 to $20

[@johniii8147]

@@h1inc816 .50 cents isn't worth bothering with. It's more like a 10 to 30 dollar jump. AA won't be doing that with horrible cashflows and 40 billion in debt. They are the weakest of the bunch.

[@bry8505]

@@h1inc816 yeah this didn’t age well

[@abec8211]

Once again CNBC trurns a blind eye to huge ceo compensations and bonuses.

[@AnythingMike]

Short term: Yes Long term: they always get bailouts. Rinse and repeat 🤘

[@CannabisTechLife]

en.wikipedia.org/wiki/List_of_airline_bankruptcies_in_the_United_States Uhhh, this long list of bankrupt airlines begs to differ on "always" getting a bailout...

[@julianwarmington1267]

@@benchoflemons398 Or they buy their own stocks to maintain the mere appearance of their still being a valued company.

[@trentonx]

Conservatives are the worst at being economically conservative sigh. Bailouts while apposing covid relief

[@christopherliang6879]

They do get bailouts but it is mainly the big airlines who managed to survive decades of competition. The government is not bailing out every airline that needs help just like they did not bailout every single bank during the Financial Crisis. But yes, bailouts are frustrating especially when companies proceeded to do stock buybacks during better times

[@dohc1067]

As a former regional airline employee who was laid off back in 2018 prior to the pandemic, I can definitely see it from different angles. There are too many jobs that are connected with the aviation industry and it is very much needed domestically as well as internationally. No one can predict what will happen in the future, but history has shown the legacy airlines the unexpected can and will happen. The first reflex is to lay off workers and at the same time satisfy your stockholders...what about a rainy day fund? Thats something I have never understood. Despite all of the events over the years, legacy airlines always bounced back and enjoyed alot of profitable years even though covid is a whole different beast all together. I am glad there were stipulations with the bailouts, but unfortunately its still on the tax payer regardless.

[@idib1739]

That 'rainy day fund' you mentioned already exists. They just call it 'tax payer money'.

[@dohc1067]

@@MelonEsuk True and yet that has backfired on them with alot of canceled flights ✈️. Well when they can automate gate and baggage agents then I will start to worry.

[@dohc1067]

@@idib1739 lol 😆 yeh!

[@thalesbessa7862]

Coming soon. Massive unemployment is waiting for us. :(

[@Ran-he5ij]

@@thalesbessa7862 does this mean pilots jobs are in jeopardy? Is it worth getting into flight training now if my job will be automated?

[@mmikael281]

In long term, bailouts mean that everyone loses. Bailouts prevent the industry from healing and bad companies keep making bad business. This all so means that there are fewer jobs available in long term.

[@mvpfocus]

I agree, but I think it just means that the free market is not the right solution for essential public services. Mass transit-including airlines, healthcare, drugs, insurance, utilities... these shouldn't be for-profit industries, because bilking citizens for things we all already need is not productive for society, because it just creates economic inequality. You can draw a straight line directly from deregulation to the present day out-of-control wealth gap. Some things just shouldn't run at a profit; because all of that revenue would be better going right back into innovation and safety... instead of being sucked out by things like stock buybacks or golden parachutes. That's the problem with our society, there's simply too much greed. We need to go back to the drawing board and figure out that infinite growth is a quaint fiction within a defined space, and that greed is not a stand-in for productivity. The impending metaverse may give us the impression that ideas are infinite, and that fiat can be replaced, but all that will do is speed up the demise of the Fed's ongoing Ponzi scheme, and cause inflation shoot up like a rocket ship. Worse than all of the above, the fact that the richest country in the world somehow cannot pay its own bills is a cruel farce. The only thing propping up the dollar is an unimpeachable modern military arsenal. Consequently, the system, as it stands, is irreparably broken, and it must be either hard reset... or all of these untenable conflicting issues will eventually force it to crash under its own weight.

[@mrparts]

Airlines support millions of jobs directly and indirectly, so they will always be bailed out in times of crisis. No sane government would let their airline sector collapse just for ideological reasons or for simplified economic theories of the “ free market”

[@JohnnyAmerique]

That’s a very naive perspective. Airlines are strategically crucial businesses. Just as concerns national security, the airlines provide a reserve fleet of aircraft that can be quickly repurposed for troop transport in the event of war. For that reason alone, the government has a strong interest in keeping them flying. And there are many other good reasons why we ought to keep this strategic industry alive, even if that means that at times it runs at a financial loss.

[@mmikael281]

@@JohnnyAmerique I could say the exact same thing. Rescue packages will save companies not industries. No recession or catastrophe destroys an industry at once, the only thing that can happen is a slump. The only reason for rescue packages is to choose whether to save the economy now and destroy it in the future or vice versa.

[@Lee-uy5vz]

that was so biased, sometimes bailout really work out, depending on which company to bailout

[@hbarudi]

My biggest problem with airlines is those flights that take you multiple stops for what can be done with a single regional flight of just 2 hours. When they take 20 hours or more with long layovers at multiple airports. And when booking amtrak train ride takes less time and require no hassle and no going through security to board the train. Now once better trains are built, they will be able to provide ground competition to flying.

[@nikobelic4251]

It’s not as simple as “better trains” in the US Rail infrastructure has to be rebuilt. Amtrak doesn’t own most of their track it’s owned by freight companies and they give their freight trains priority. That’s the reason you see something like 11 hour delays for Amtrak trains. Also rail for high speed trains has to be straight for long periods of time for the train to work as High Speed. If not, the train will just go as slow as a conventional train. Finally, regional 2 hour hops aren’t profitable. That’s why airlines use Hub and spoke. That’s why NASA and a bunch of startups are working on Regional Air Mobility (RAM) They are using technologies such as electrification, and automation, to bring down the cost of small (as in 2-9 seater propellor aircraft) on these short routes. It would be on demand service instead of scheduled where you would could hail a small aircraft (not necessarily an airplane some of these are EVTOL concepts) to your local small airport and fly to another small airport close to your final destination. The electrification is being used to bring down the cost of fuel and the automation is being used to bring down the number of pilots to 1 or 0 depending on the type of aircraft (0 is actually remotely piloted and is only planned for some cargo aircraft for now) Look up NASA’s Regional Air Mobility study and or Companies like LILILUM (New Aircraft) Pyka (new aircraft) Vertical Aerospace (New Aircraft) Reliable Robotics (automation) X-Wing (automation) The technologies for Regional Air Mobility are all coming together the question is: Will customers make the business model work? Will people be willing to sit in small 2-9 seater aircraft and get shaken up by all the small bumps airliners don’t feel because they fly higher? In the far future Would they be willing to step on a small remotely piloted aircraft that will still be cramped and small and bumpy compared to an airliner? Time will tell. The idea is great but I fly these small aircraft people want to use for regional air mobility They would have to be completely redesigned. They have no AC, they get really hot, and when they slow down the cabin smells like fuel. If you aren’t into flying, (most people aren’t) it will be pretty unpleasant experience. If the aircraft are redesigned (which they will be) and be electric and comfortable and aerated it can be a very pleasant experience. Unfortunately the turbulence will be something people will have to get used to. It’s a lot bumpier flying lower to the ground especially below a cloud.

[@starventure]

@@nikobelic4251 The problem with that mode of thinking is the public. We live in a highly litigious and activist society, and the slightest offense or screwup can mean the difference between profit and loss due to a new law banging down on the offender. Single pilot electric aircraft? First time one goes down and kills someone, the activists will devour the airline, manufacturer, pilot etc. Consider if will, the aftermath and effects of Colgan Air 3407 as an example of this.

[@nikobelic4251]

@@starventure I agree 100%

[@KB-ke3fi]

Never gonna happen.

[@srry198]

COVID, GFC, 9/11 - the airline industry is one of the few where you could do everything right operationally and still get the rugged pulled from under you

[@TheGeorgeous]

As long as you can't control oil prices. You can't win.

[@hermeslein6614]

China is now the richest country

[@varunmittal3617]

Hydrogen fuel on the way

[@MrBoliao98]

@@hermeslein6614 and they don't believe in airlines, high speed rail can carry millions

[@alooga555]

@@MrBoliao98 Sure, but it still takes three hours from Paris to London be Eurostar.

[@MrBoliao98]

@@alooga555 did it not occur to you how much time you waste navigating airport security, checking in early and all. Furthermore, you can keep train stations and depots close and compact in the city centre. You save a lot of time with this features. There's a reason the Acela still runs, it makes sense because it's simply faster because of all the little things that add up to being faster in spite of planes being speed wise faster.

[@thatpilatesguy]

If the legacy carriers weren't busy with stock buy backs, they wouldn't be struggling so much.

[@hermeslein6614]

America is now defeated as richest country by China wahah next most powerful country

[@davidbaldwin1591]

@@hermeslein6614 China may have money, but it's domestic market is useless. Downtown is skyscrapers; 5 miles out is pure 19th century. Just like USSR, the country has nukes, while it's people can't even buy a car.

[@davidbaldwin1591]

@@hermeslein6614 China has no domestic market. Without trade, China is a zero.

[@wbrace2276]

And they will do buy backs again. And yes, we the idiots, will bail them out again. For the airlines it’s a casino where you can never lose.

[@TomNook.]

@David LOL, millions of Americans can't even afford basic healthcare

[@AlexanderSkinnerVids]

“They have had to increase the starting wages for new hire employees” You say that like it’s a bad thing. Curious.

[@roysalman6720]

When wages go up expenses go up which forces prices to go up so the business stays profitable. Eventually the employees just goes to higher prices. Simple inflation. You didn’t improve their life all you did was devalue the currency of their country. Which indirectly actually hurts their pockets.

[@johnsamuel1999]

It depends , wages are often the largest operational cost to business

[@hakimimastor6777]

@@roysalman6720 isn't the companies already profited so much before? Plus for example a company earned billions, if they raise salary based on inflations, they'll still be profitable

[@mvpfocus]

@@roysalman6720 Inflation is already going way up, so wages should follow. It's a fallacy to think that a paying a living wage drives inflation. People used to have good jobs and good pensions, and their wages provided for a family, and society was booming. The modern day reality, however, is that people make less today than they did 50 years ago, in terms of the ability to support a family. Also, the economy is supposed to be one big circle. People have to actually have some real money to go out and buy things and take vacations. Otherwise, those companies can't then continue to pay back that same money to other employees that will also use that money to start the cycle over again. This is why having too much economic inequality is a system crasher; because if a few at the top keep siphoning from the economic cycle, eventually, no one will be able to afford to keep buying up the things that make those few people wealthy. Eventually, the wealthy will just take their ball and go home, or jet off to another locale where the tax policy is more friendly. So, all of society ends up losing. (I believe that we're already at this late stage)

[@DOGSDOGGER]

Right? I just hit that part and paused the video to check the comments!

[@taganrose6682]

When it comes to the world of investing,most people don't know where to start. Fortunately, great investors of the present and investors of the past can provide us with guidance on how to invest 🙏🙏

[@lauraness2971]

Personally as a first time investor, I started trading with Mr George William With $1,000 now my portfolio is worth $5,400 within the space of few months trading with him

[@louismaxence4775]

After watching so many KZbin tutorial videos about trading I was still making losses untill Mr George William started managing my investment. now I make $6,800 weekly. God bless Mr George William . His been a blessing to my family.

[@williamalex6633]

My first investment with Mr George William gave me $24,300 and that has made me invest without the fear of losing, I got four of my friends that I referred to him and they are making profit just like me. May God bless Mr George William

[@lisaaddison2490]

Am much thrilled to see him other investors. he is a very sincere man who understands the challenges faced by beginners, I started trading bitcoin under his guidance after seeing his interview with CNBC. he doesn't request for any charges to teach investors on how to trade and generate profits for themselves.

[@harunaabdullahi7446]

Mr George William has brought me out of the wrenches and to better living through trading options, I encourage newbies to trade with him

[@daviidon]

No, they keep profits when they succeed and get bailed out when they fail.

[@freddytang2128]

what do you prefer, let airlines go bust? you want massive flight cancellations, tens of thousands of people laid off, and less competition?

[@daviidon]

@@freddytang2128 Yes, in a free market, poorly managed, inefficient companies would go bankrupt. They would get bought up by new, more proficient owners. Incompetent CEOs would get fired, not a pay raise. Rewarding failure is a road to disaster, you are telling them that regardless of how incompetent they are, big daddy will always be there to save them. What incentive would they have to improve in that situation?

[@HR15DE]

This guy gets it. This is why free markets are good it rewards meritocracy Either bail out all bussiness that fail or bailout none. Fair

[@freddytang2128]

@@daviidon “brought up by more proficient owners” wow first time I hear someone advocate oligopoly where a few big players control an industry and reduce competition

[@daviidon]

@@freddytang2128 They were never competition if they couldn't turn a profit. An inefficient company is a burden to society. I've never seen anyone argue that the public should fund the lavish lifestyles of incompetent CEOs.

[@tylergraston5270]

Aircraft maintenance is often forgotten on why it’s hard to stay profitable. It’s expensive to fix planes.

[@johniii8147]

It's fairly lower on the list of total expenses for a major airline. Fuel and labor are well over 50% of the total expenses alone. Maintenance is about number 5 on the list typically given the general reliability of modern aircraft.

[@cjmerritt7]

@8:06 “making sure the airlines meet government regulated safety standards”, cue the ground crew chap climbing on the mid rail of his mobile steps to clean the windscreen! 👍🏻

[@IllusiveDude]

my thoughts exactly lmao

[@OneAdam12Adam]

They busted the union so there's no longer any safety standard.

[@georginalmartin]

I worked for an airline for 5.5 years in Australia. I took redundancy in 2020 due to COVID. It is true a lot of airlines operate on thin margins. The cost of fuel, cost to repair and maintain a single aircraft and equipment for it is astronomical, paying employees, uniforms, hotel rooms for layovers, training (and maintaining), airline software/programs/computers, lounges, advertising, food, services, codeshares, paying for their “spot” within the terminal - check in counters/gates/aero bridges/food court then unforeseeable delays/cancellations…. the list goes on. Tie that in with that they’re an airline/business competing with other airlines and constantly have to lower their prices to get customers in the door and choose them so the profit margin really isn’t there. It is but it isn’t… I’m 50/50 on the bail out scheme. I know multiple airlines got help from the Australian Government during COVID. It’s a tough one. They’re a business at the end of the day but they keep our country moving. Without airlines the country stops - it is probably more important than we realise. Every flight is loaded to the brink with cargo (in fact, cargo would take priority over having a bum on the seat - more $$$). More to the point though, there isn’t many domestic carriers Australia so if you lose one it creates a monopoly for the remaining airline and they essentially have no competitor which means they can start charging whatever price for tickets they want. So either way really the customer pays - be it tax or price of their airfare. Also, another point, is as far as I’m aware the airline I worked for used to put all their profits back into the company to keep “building it” and didn’t have much cash. This was a tax right off I believe and the company paid big time with COVID. But then being a business they need to have more accountability for their actions and need to operate with less risk (i.e. not loading all your profit back into the business to grow it and keep more “rainy day” cash at hand). So it kinda sucks for the consumer because either way we lose…

[@grizzlednerd4521]

I'm an aussie as well, and you make excellent points. With regards to bailouts, I'm of the opinion the real issue is that the logic behind deregulation is no longer valid (or wasn't pre-COVID). Air travel is no longer the "luxury" it was in the 70's/80's. If an industry is that integral to a nations economy that a bailout is required during a financial crisis, I'd argue the regulation of the industry needs to be re-examined. This isn't a judgement on the performance of the industry itself, but rather a recognition that the negative externalities of the industry need to be managed from outside of it.

[@georginalmartin]

@@grizzlednerd4521 100% agree with you. Spot on

[@5kplamse]

not true. it all depends on management, Singapore Airlines made a record net profit so why cant Australia do it ?

[@GETINLOSER]

Idgaf if I fly ever again. When I was little I used to love flying. Now it's terrifying, not from the heights or speed, the PEOPLE

[@johndonald3566]

Air travel has become too accessible pricing wise. It's only going to get worse.

[@TomNook.]

Just like ski slopes, parks, beaches, libraries, cafes.... Great when there's a few people, hell when it's full

[@gigilee8599]

in what universe is Southwest still a "low cost" airline? They're usually at least 20% more expensive than American or Delta.

[@haimingxu6922]

I’m gusssing short flights are cheaper

[@rickyayy]

Haven't seen cheap southwest flights in a longtime

[@LEVELGAZANOW]

@@rickyayy just flew today on a $39 SWA fare.

[@G-546]

@@haimingxu6922 they are actually mostly more expensive

[@giantlabs]

Southwest has always beaten American and Delta for me. You also get 2 free baggage built into that price. I can fly Southwest from Minneapolis to Denver anywhere between $100-$150 roundtrip; I'm looking at $200+ with other competitors. It has made skiing Colorado resorts viable for me.

[@williamcrossan9333]

Staff have been wearing the cost for the last couple of years. In Australia, aircraft engineering careers have enjoyed 2 decades of decay.

[@None0fYourBusiness]

Sounds like deregulation has been harmful to both the consumer and the airlines themselves.

[@hyy3657]

Yeah, this is interesting phenomenon, seems like free market doesn't work in this sector.

[@oreganodealerlsog8630]

@@hyy3657 as in many other transport sectors

[@tachin2.07]

Well you can fly at a bargain and to more places than before, so consumers possibly had benefited about deregulation

[@None0fYourBusiness]

@@tachin2.07 That was always going to happen no matter what as air travel matured. But as the video explains, we'd be flying much more comfortably and much more cheaply today had the airlines NOT been deregulated.

[@tachin2.07]

@@None0fYourBusiness Thats not true If cheaps are low is because competition and doing thing uncorfotable

[@ImaniNile]

This report appears to focus on US airlines only. Are international airlines (i.e., British Airways, Emirates, Japan Air, etc.) experiencing the same challenges? Wondering if US airlines could benefit from practices of foreign airlines.

[@wrednax8594]

Likewise

[@maxmustermann5492]

I think it‘s difficult to compare especially Arab airlines to western ones, since they are essentially state-owned and serve as a poster child for their countries… don‘t think that they face the same issues (taxation, labor laws, landing fees at home etc.)

[@BloodHunter96]

I googled the CEO salaries and it goes up to around $13 million per year. People losing their jobs (earning maybe $50k per year) because it is a business cost which the business cannot sustain, however if you cut the CEO salary down to $100k per year, with the rest you could basically pay 258 yearly salaries at $50k per year. Prove me wrong

[@giannis670]

How old are you?

[@conversationswithcory3730]

Damn, "their putting you in a metal tube" that's how you feel bruh

[@dpeasehead]

@lei prince: A lot of the "tubes" and other parts of the airframes are made of composites instead of metal nowadays in order to reduce fuel costs.

[@tanjimpurno2560]

Another thing is that countries have government owned airlines and those are heavily subsidized, many of them don't care about profits as long as they are giving services at a cheaper rate.

[@johnsamuel1999]

not necessarily , some do make a profit but most make large losses . they also can’t compete with private sector low cost airlines or even legacy more comfortable airlines in terms of price and comfort

[@mrl9235]

In South Africa the state owned one tickets is very expensive compared to private one

[@MelissaR784]

Think our government stepped in to run our airlines over too many plane crashes.

[@BrandonPMotsilanyane]

I thought their biggest expense was fueling upper management's pockets instead cos they barely reinvest their cashflow they are always bailed out

[@frankpinmtl]

Well, they do spend free cash on stock buybacks and dividends, so there is that

[@randcarlson2296]

I feel like a lot of the issues with airline financial health in 2020 stem from stock buybacks impacting cash reserves. While buybacks are good for investors, in terms of financial health for a company, it can put them at risk if they don’t have enough reserves. They wouldn’t have needed anywhere near the bailouts they got last year had they not been buying back stock

[@zacker150]

The problem with this narrative is that entering into 2020, airlines has record reserves - more than enough to weather 9/11. Accumulating excess reserves beyond that would have been irrational, and they would have been taxed away by the use it or lose it tax.

[@VFPn96kQT]

Stock buybacks reduce dividends payouts too.

[@harperwelch5147]

We’re still recovering from the pandemic. Of course airlines are struggling. We’ve not been allowed to travel. Lots of countries will still not accept US travelers. It’s not hard to understand.

[@mvpfocus]

You're right, but even before the pandemic, there have been tons of airlines to go belly up.

[@bristoled93]

Israel and the USA won't accept me because I haven't had the jab, I miss going abroad, Americans are lucky they have such a big country with plenty of warm climates.

[@mvpfocus]

@@bristoled93 Simple solution... get the jab. By the way, vaccines have _always_ been required for international travel.

[@bristoled93]

@@mvpfocus We didn't need vaccines before covid, even for the vaccinated, travel internationally is very complicated now.

[@mvpfocus]

@@bristoled93 International travel has always required vaccines. You must have just forgotten all about all of the jabs that you've already taken throughout your life.

[@theforester_]

I just hope that doesnt have any effect in safety...

[@landtuna8061]

My wife has been an airline reservation agent for the past 20+ years. She still works at her same desk but that desk has belonged to four different airlines since she was first hired.

[@TheRealBizWiz]

*I am a full-time Day Trader. I must admit that I have never traded airline stocks. I already do well but I get scared to touch that category.*

[@Mesozoic_mammal]

Why day trade airlines, if there are so many other ways to lose money? ;-)

[@becazapatero2477]

@@Mesozoic_mammal That is quite literally the point he made. 🤦🏻

[@aabb-zz9uw]

There are no train stocks anyway because trains belong to the government just like tanks and firefighter trucks and police cars.

[@eprofessio]

My family have no intentions to travel by air. We have also completely stopped traveling by air for business.

[@idevoru]

so u take boat?

[@huntress1013]

Thankfully for a lot of routes there is indeed an alternative, which I use frequently. Trains. I hate flying and try to find away around it every time I have to travel longer distances.

[@Telluwide]

Companies like Uber are just now learning the lessons of the airlines...

[@becazapatero2477]

What do you mean?

[@Telluwide]

@@becazapatero2477 A company can't keep operating at a loss in perpetuity. Sooner or later, investors are going to start seeing through the clouds of revenue to profits or lack thereof. The airline industry has been at a race to the bottom ever since the first batch of deregulation of the early 80's...Uber has been operating at a loss since their inception and it's only going to get worse as Drivers demand higher wages, States start passing legislation, fuel costs go up, etc. People are starting to see companies like Uber for what they really are. High tech sweatshops. As such, and what the growing trend is, investors are starting to tire of "Unicorns", plus the era of cheap money is coming to an end as Boomers go into retirement....I could go on....

[@becazapatero2477]

@@Telluwide Yea that makes sense. Thank you! ❤️🧘🏻‍♀️

[@Cyrus992]

I watching this before taking off from Memphis using Allegiant. The airport was among the worst I have ever been

[@johniii8147]

It hasn't been renovated in decades and lost most of it's traffic with the shut down of the Northwest/Republic hub. Redundant to ATL once they merged with DL

[@usgator]

Memphis is a dump. I’m from there and every time I go back, I’m shocked how crappy it is. The whole area is crappy. I’m glad I left.

[@johniii8147]

@@usgator I've never been there but definitely been told no real reason to go.

[@usgator]

@@johniii8147 you’re not missing anything…lol

[@Cyrus992]

@@usgator Downtown is decent but a dump compared to Nashville

[@RealManasBose]

0:52 HSR are good alternative, but only in densely populated areas with close proximity.

[@LauraB.335]

How about all businesses focus on their employees first, which then translates to employees actually wanting to be there and take care of customers, which then translates to the bottom line for shareholders. It’s ridiculous when a company goes public and gears EVERYTHING to shareholders first. People are laid off, cost-cutting takes place, service suffers, and in many businesses, customers go elsewhere, which isn’t good for the business or shareholders. My husband works for a company who was bought out by another company whose sole purpose is to trim the fat and re-sell. They laid off so many people that the people left in certain areas are working 80-hour weeks, because one person is now doing the job of ten. I used to work for the company myself when it was an LLC, and the leaders actually treated employees like gold (free lunch, free breakfast goodies, free development classes, holiday parties, the CEO would have lunch with each employee to get to know them). It went public, and all of that went away. "I truly believe that if you take care of your employees, they will take care of your business.” Richard Branson

[@dpeasehead]

In spite of all of this, many of the same players have stuck with this difficult and troubled industry for decades, and others are constantly trying to get in the game by creating low cost start-ups. CEOs, VPs and other industry insiders are not telling the whole truth about the profitability of the industry, or how it really makes its money. Hauling cargo is almost alway insanely lucrative especially on overseas routes, and the US government has spent decades working with the industry in stripping workers of rights and power so that they can be easily and legally squeezed by the industry executives whenever airlines have difficulties, including self inflicted ones..

[@eilois]

the alternative is to run franchise airliner. That way a starter in the industry could run a new route for example, with their budget. But still get connection to the parent company.

[@benganchan1420]

Yes, there is a substitute for air travel . I visit at least 5 countries in a day on KZbin - Bangkok, Osaka,Taipei, Guangzhou, Hawaii. It’s armchair travel in 4K, complete with drone shots . The choice is unlimited , you can explore a whole city or you can explore a few streets at a time.

[@argentiquenoborentino6780]

Air transportation is super regulated Expenses, maintenance, insurance Every single part from rivets and screws to entire engines have to be approved by FAA and manufacturers. Every repair has to be done by an approved and licensed mechanic. The cost of just the aircraft itself is just astronomical and that’s if everything goes well.

[@LEVELGAZANOW]

Well, the only carrier prior to COVID that wasn’t operating in the red was Southwest. March of 2020, Delta was operating at -$14 Billion, United -$29 Billion, American -$40 Billion while Southwest was in the black at +$7 Billion. COVID and overreaching regulations have really restricted the playing field for profitability

[@nicolascossio5961]

@Rohit S not letting people travel ¿?

[@noopz8035]

They need to focus on leisure and people taking vacations . With the metaverse and internet and VR you don't really need to fly to a meeting or business trip anymore .

[@caelansmith]

Frequent flyer programs are a major revenue and profit driver for airlines, especially in Australia

[@JediMik]

спасибо за хороший ликбез. Конечно, недооценил важность отрасли летом 2020, зря шортил

[@jaydenstrickland9162]

Very well produced video. Dont see a lot of high quality videos like that out there.

[@jimmyneutron4329]

You look as the personification of the expression "extremely optimistic airliner virgin"

[@seanthe100]

Delta has won this profit game. Most profitable airline on the planet not even close.

[@agusbenzaenuri5881]

No. China is

[@paulroyce7244]

In case it hasn't already been done, I'd like to see a video on the future of aviation in relation to recent developments in global warming. Furthermore, how could aviation industry react if it were to be discouraged, or even severely limited, for environmental reasons, by governments, if it doesn't find a way to be more sustainable in a reasonable amount of time. Anyways great videos. Thanks a lot!

[@helensteve2817]

Thanks for this educative video. You all have to know that Growth is hard, but you have got to choose what you want for your life! Rather be stuck in the same place for years. Meet Maria Martinez. for your investment growth!!!.

[@gurametsadashvili1888]

I have tried lots of traders but non is as genuine as Maria Martinez, though I was skeptical but still gave her a try of $500 and got a profit of $7,500 in 2days I'm so grateful🙏.

[@janemunsey9753]

I had been living under average flnancial earnlng until i came in contact with Ms Maria Martinez, a professional crypto trader, so i had to give her a shot of $2,000 And got a proflt of $14,350 in just 7 days, Life have been better afterwards!!!

[@helensteve2817]

You can Reach her on *Te-Ie-gr-am.* with the name below. Maria_martt

[@user-ft3vx3ds6t]

The book "Why The Airline Business Is Broken" by Michael O'Leary highlights several problematic aspects of the airline industry globally: 1) Overcapacity: Airlines have added too many seats to the market, leading to intense competition and pricing wars. This has resulted in lower fares for passengers but also lower profit margins for airlines. 2) High costs: Airlines have high fixed costs, such as aircraft leasing, maintenance, and crew salaries. These costs are not easily reduced, making it challenging for airlines to operate profitably. 3) Regulation: The airline industry is heavily regulated, with strict safety and security standards. While these standards are necessary, they also add to the cost structure of airlines and limit their ability to innovate and compete. 4) Infrastructure: Airports and air traffic control systems are often outdated and inefficient, leading to delays and additional costs for airlines. 5) Technology: The airline industry has been slow to adopt new technologies, such as artificial intelligence and automation, which could help reduce costs and improve efficiency. 6) Environmental concerns: The aviation industry is a significant contributor to greenhouse gas emissions, with increasing pressure from governments and consumers to address this issue. These problems have led to financial instability and bankruptcies in the airline industry, particularly during times of economic downturn or geopolitical uncertainty. The COVID-19 pandemic has further exacerbated these issues, with a significant drop in demand for air travel and resulting financial losses for airlines.

[@Anolaana]

0:50 It might not have substitutes, but once you're in the industry and conform to the appropriate regulations & qualifications, for any given service the barrier to entry seem fairly low. The plane'll go anywhere, so as long as you can strike up a deal with the airport services you can enter a market. It feels like a perfectly competitive market.

[@RaulRodriguez-wr8lq]

Thanks, airline is a risky business, public has been smart, they demanded low price, business travel, got smart too, shareholders are grethy.

[@keenheat3335]

airline also fire all the employee during start of covid, now they can't hire them back. Kind of "you reap what you sow" situation. Oil future contract was negative, I didn't see airline gobble them during 2020 june when negative oil future contract happen. Lack of long term planning is more of an issue than any of this short input resource shock.

[@Jellyonpizza]

They offered leave packages and employees took them. Despite Covid-19 the increase of air travel happened quicker than the airlines were anticipating and now they are struggling with staffing for the time being. Both pilots and flight attendants go through weeks long of training in order to work.

[@nikobelic4251]

To be fair… The airlines didn’t have the money to gobble up oil future contracts. They just sat on what they had and decreased expenses to a maximum. It it weren’t for COVID the drop in oil prices would have been amazing for the airlines

[@donaldsebolt6890]

I miss Northwest Airways, their service was great, I always flied them.

[@mvpfocus]

If you knew Northwest, you would know that it's Northwest _Airlines._

[@donaldsebolt6890]

@@mvpfocus Spell check got me smart ass, I flew from DTW to AMS once a month for three years with them for work and racked up over 500k flight miles with them.

[@mvpfocus]

@@donaldsebolt6890 Spell check doesn't mix up "airlines" and "airways." I just tested it and, after writing, "Northwest Air," the writer is offered, "Airlines." If it's an honest mistake don’t try to blame it on spell check. Spell check will only offer an incorrect company name if the writer has already written it incorrectly before.

[@ljimlewis]

@@donaldsebolt6890 It’s COVID. We all got a hair up …….

[@james40135]

Your debating airways and airlines. But fly straight over flied? Flew..

[@neilmenon8943]

Report does not makes sense. Airlines hedge the fuel prices for long runs (futures contract). They don't shop for fuel day today. So whatever the dude is saying does not make sense.

[@mvpfocus]

This video just focuses on the fact that ticket prices are not directly tied to jet fuel costs, which makes profit margins less predictable. But, you're correct, airlines hedge in anticipation of oil prices; and it either goes well for them, or they end up well on their way to needing another bailout.

[@spoddie]

8:09 The guy cleaning the window. That looks really dangerous!

[@ljimlewis]

Remember Richard Ferris, United Airlines. He wanted to create an airline/hotel/travel & entertainment company. Wonder how that would have worked out? Would COVID have had less effect on a diversified company?

[@mahidmirza]

Can you make a video on Ceramic tile factories ? Which is the Best factory, popular tiles in the world, their sizes and countries producing the most tiles. 🙂

[@sally2395]

I've been working for American Airlines the past 4 years and haven't seen a raise above new hires. It's either you stay the same as entry pay or you become a supervisor.

[@nhanha7433]

We still look for the damage from the weathers that the sure things and the cruise oil. These are the two big issues.

[@JF238xCreatingABetterFuture]

The cost of jet fuel is the biggest profit killer for any air carrier (no matter if you are commercial, cargo, or private). Jet fuel is the most expensive thing in the aviation industry. Time to create new ways to fuel aircrafts of the future!

[@Pyrrhic.]

Yeah, share buybacks and bailouts. Not a fan. They should just nationalize the airlines if they desperately need a bailout, wipe out the share holders and save jobs. The auto industry turned out fine after.

[@ksmurphable]

I’m thinking business travel won’t bounce back too much since companies now know they can save and do well online. Flying will be an as needed only or high level execs only I think. But we as people are realizing travel is important so I think the vacation travelers will increase

[@johniii8147]

It's already bouncing back.

[@thomasburke7995]

Having worked in the industry for over 30 years .. airlines are either filing for bankruptcy or are becoming insolvent and a single step away from recivership... the single biggest problem is its inability to predict or hedge the cost of fuel and stuiped regulations.. 90% of all airless outside of America are subsidize by thier governments.. just look at Airbus.

[@axellacaze9115]

Airbus is not an airline... It's like comparing boeing to delta airlines.

[@OneAdam12Adam]

Truth

[@maddexq9107]

@@axellacaze9115 - I guess @thomas Burke having worked for over 30yrs in the industry didn’t do a lot to help him understand basics like the difference between airplane manufacturers and airline carriers, huh?

[@ROBLOXGamingDavid]

It's better to use high-speed rail should airline industry declines to the point of no return, at least until it recovers or if the industry restructures. It closes the gap regarding in distances where for airlines, it is too expensive and too short, while for automobile, it would take too long. But still, I find airlines fascinating for at least moving a large number of people to destinations where they want to go.

[@arielspalter7425]

High quality content!

[@shubhamgandlewar5573]

After the major part of transportation will shift to electric mode then only industry which will be using fuel such as diesel will be aviation industry. Long term investment will reap you reward

[@danielking104]

Wow..... zero mention of the regional airline system.

[@Josh-fw5yt]

They didn’t pay down their debt, certainly nowhere close to the amount of shares they repurchased. Hard to argue shareholders don’t deserve the pain they’ve had to endure. That’s what happens when you pay yourself for years instead of your creditors, they begin to own you. :)

[@ReeMatic]

I remember years ago they (news media)said airline's was one of the most profitable businesses

[@megalodon1726]

Airline deregulation has been bad for passengers, taxpayers, and the airlines themselves. It's been nothing but worse service, cramped seats, bailouts and bankruptcies.

[@starventure]

You can thank Jimmy Carter.

[@Executor009]

When they mentioned business models i thought they were gonna talk about airline miles.

[@arosenweig]

The minimum wage for airline employees should be nothing less than $15 per hour. This should include people who work directly for the airline and contract workers who work for an outside company.

[@limelimelimes]

Cue higher ticket prices

[@johnjones-yt8rt]

@@limelimelimes Nothing wrong with that.

[@dknowles60]

They pay a lot more then 15 dollars per hour. Burger King 👑 in my town pays 13.25 per hour

[@mattiboi09]

I love how these airlines are complaining about how hard it is to make their margins, yet they are still making millions and even billions in profit. Profit is after expenses, so essentially they just need to readjust investor expectations to expect lower profits due to increase in EMPLOYEE (not executive) wage increases and infrastructure costs to maintain an industry leading fleet. This will allow for better training and hiring standards to increase employee and customer satisfaction, creating less of a volatile industry to invest in. Just something to think about…

[@edh615]

good luck with that, it isn't maximizing short term profits.

[@mattiboi09]

@@edh615 but what are the short term profits being used for…?

[@lokesh303101]

Fuel Costs are the reason for losses in Airline Industry. The best way to be in Profits is to have Medium Haul Planes with 3 Spool Engines.

[@MoonLiteNite]

uhhh @13:00 uhhhh this isn't a big question, this is a known fact, as we already have more passengers now than in 2019.....

[@jamesbradley3291]

The problem is built into the airline business. To understand lets first look at the cab business. The charge one pays is based on several factors. Distance between starting point and destination, toll fees, and time. The further your destination, the larger the final bill. In contrast, airlines do not charge by the distance, time and landing fees. They calculate all the seats they can sell to a destination. This is why a ticket from LA to NY is cheaper than a flight from LA to Reno. Obviously the fuel costs, time to fly and landing charges in NY are FAR greater than a flight to Reno. The problem is if an airline were to charge based on fuel costs, payroll for the flight crew and landing fees, the tickets would be very high to purchase. So airlines lose money on the long flights unless the flights are 80%+ full all the time. But by charging more on the shorter flights, it offsets the costs on the longer flights since those long flights generally are major destinations like LA, Vegas, Dallas, Chicago, Atlanta, Miami, and NY. If airlines charged by the air miles, they would lose traffic, but the flights would be profitable. On the counter argument that we should have more rail systems like Europe, in Europe traveling 2 hours by train you can have traveled thru several countries. Or traveled from one side of Switzerland to the opposite side. Whereas in the US, traveling 2 hours you are only halfway to your destination. Europe had their railway systems long before the automobile was even created.

[@dknowles60]

The us is so big you need 2 days to get halfway to where you need to go

[@d.b.cooper1]

I mean a year later from this video countless airlines boasting insane profits in high single billion $ range despite high oil prices. Emriates, SIngapore, Ryanair, list goes on $$$

[@zancrus9629]

Well lets see. I can fly from Minneapolis MN to Dayton OH as long as I don't mind flying all the way to Atlanta for a 7 hour layover. Or I can drive the 10-11 hours for less gas than the ticket costs. I wonder why they are losing money. Heck most of the time I drive because other than in some rare occurrences it is faster for me to drive than to take a plane.

[@rackt09]

"It makes a hockey game look like a kid's garden party" Can some please explain wtf that even means??

[@gracjankasprzyk328]

Hockey games are brutal sometimes I guess.

[@rackt09]

@@gracjankasprzyk328 Sure, but what kids have garden parties?

[@JumaaneRay]

😂

[@gladegoodrich2297]

Regional airlines are the ones to watch. Way ahead buying and selling them. Jet Blues only 10 bucks a share!!!

[@blakebrown534]

*Airlines buy all their fuel using the futures market...how does price fluctuations in the cost of oil impact their cash flow the way they make it out to be in this video, then, when they bought their fuel at a guaranteed price long ago and can wait things out when price spikes before locking in contracts for their future fuel needs?*

[@victoreguchii]

Meu deus, os bancos com logo da VASP nos 5:00 kkkkkkkk

[@ronkelly100]

Needed to cross oceans.Has stiffed land travel technology advancements.Used to support costs of military technologies.

[@TheNoobTrooper]

Want to have a increased profit margin for airlines ? Stop giving CEOs stupid salaries! Simple.

[@hatchetscoured]

Very well thought out analysis

[@johnsamuel1999]

even if they paid the ceo nothing it won’t makes a difference since they would only save a few million

[@anthonybutto1925]

Why has Emirates been such a profitable airline company for probably 38 years? Why not look to them for answers? What are they waiting for?

[@alphastratus6623]

That's not broken, that's competition and free market. These people balancing best between costs and income will win.

[@stevebren88]

Didn't' really answer the question that they themselves asked... Why if its so asset intensive, with such low profit margins and high risk is there so much competition? I would say the answer is high demand, regardless of everything else. If there is significant money to be made, if only for a short, period people will jump on it. If your a business owner who can go to a bank, take a loan out and make money for 10 years, who cares if it goes under? Its not your money, you've made it and then the company goes bankrupt. They aren't liable for anything. Others will trade on the airlines, like they would derivatives on the stock market. Then finally you have the oil countries, which have many reasons for starting airlines. Vanity projects, getting people to their dessert country hubs and the fact that the largest expensive (oil) is theirs..

[@NightRidah777]

Same reason why casinos thrive. Everyone thinks they are the ones to crack the code, capture the demand and make all the money. So people keep trying over and over

[@realazduffman]

Simple answer. Other than Southwest EVERY airline in USA History has ended up bankrupt at some point.

[@G-546]

Very inconsiderate of airlines like Spirit and Allegiant

[@DeRussellMasina]

Why can't the cost be passed to the consumer? As long as all the airlines agree to a floor price then I do not see the issue. Make the pricing simple. Make the industry floor a standard behind closed doors between airlines. Each airline needs to add additional revenue stream outside of flying ✈

[@christopherliang6879]

Do forward contracts not help airline fuel costs a bit?

[@nhanha7433]

The plan for workers to work in other countries and time return home. But we also see the demand of automate machines handle many serious task.

[@TheJoshheart90]

I bet if we let them fail, the airline industry would rise bigger and better. New people with better ideas would take over. Man, I wish this country was capitalistic country…oh wait… we are. Too bad we don’t live like. But if you are a normal business owner you’re pretty much screwed.

[@agisler87]

If we don't live like a capitalist country are we really a capitalist country? Seems like calling our country capitalist is nothing more than a facade.

[@TheJoshheart90]

@@agisler87 I mean, it’s still possible to rise from nothing and become something through business. Just a lot of corruption which sucks

[@AC-oq8gc]

Airline Strategy during the pandemic: Schedule more flights = more capacity = more people booking flights = more revenue for the airline = more capital in the airline’s pockets = happier investors and shareholders Considering: 1. Shortage of staff (due to layoffs and furlough) 2. Airline knowing the active on-duty employees and actual labour needed for operating flights 3. Poor customer service (due to staff shortage and poor training) 4. Little to no passengers’ protection in case of cancellation and delays in the US Why should US airlines improve? Right now airlines are enjoying high load factor due to the cancellation of flights that are unable to depart due to the shortage of staff. Having a high load factor is more profitable for airlines since adding more passengers to one flight is less costly that having two flight with 50% load factor. Moreover, other airlines are experiencing the same issues… so it is also hard for customers to switch airline and choose “a better one”. Therefore, do not expect to see big improvements in the short term…. Airline companies still have to recover for the losses in 2020 and 2021… and guess who is going to suffer the consequences? Customers…. That’s why they have been saying “during those holidays pack some patience”

[@maxsteel32]

If airlines are bailed out they should have to sell a % of stock to the government. Bet they won't be looking for that money with that deal.

[@johnpatrick1588]

Former long-term CEO Bob Crandell of American Air once said he would never invest in airlines.

[@danielhutchinson6604]

If the investors who find profits from fossil fuel investments continue to dictate policy, the Nation will insist that air travel is essential.... The reality of tax dollars used to support an industry that appeals to instant gratification, or something closely resembling that..... has become more of a consumer of fuel than an asset..... Who is the fortunate ones who benefit from gulping massive gallons of Fuel for the ability to travel at speeds we may have only dreamed about a hundred years ago? The truth is indicated as Mother Nature demonstrates just how beneficial Greed has become.....