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Oddly enough, all the European airlines that they mention are lowest of the bottom budget airlines. EasyJet, RyanAir, TuiFly all are famous for offering ridicu
by fxtentacle 7y ago
Oddly enough, all the European airlines that they mention are lowest of the bottom budget airlines.
EasyJet, RyanAir, TuiFly all are famous for offering ridiculous prices like a €20 Hamburg-Barcelona roundtrip and then trying to recoup those ticket losses by charging through the nose for hand luggage, in-flight food, and by being very pushy in selling their duty-free goods.
In my opinion, those airlines have always been operating at a loss while burning through investor money, so I am not surprised the least that they are still losing money.
- arethuza 7y agoRyanair has been pretty profitable? https://www.statista.com/statistics/756093/ryanair-net-profit/ https://www.statista.com/statistics/756093/ryanair-net-profi... Edit: As does EasyJet
- mhaymo 7y agoAnd EasyJet made £430m in profit last year. http://corporate.easyjet.com/investors/results-centre http://corporate.easyjet.com/investors/results-centre
- fxtentacle 7y agoI can't deny that they declared profits, but that doesn't necessary mean that they earned those in a sustainable way. And scraping the bottom of an already under-priced airline industry doesn't seem like a safe long-term bet to me.
- missedthecue 7y agoRyanair is an amazing business. In their 25+ year history, they've never issued debt or shares to raise capital. Thye've grown through cashflow alone.
- Sharlin 7y agoGood riddance. Cheap flying is utterly unsustainable and should never have become a thing.
- buboard 7y ago> Cheap flying is utterly unsustainable It obviously is, even though these companies operate at minimum margins (which is why they go out of business so often). Nothing is sustainable during a global shock like the current one.
- CerealFounder 7y agoYea that's wrong. I think many our the most profitable, but the model requires consistent volume in a way that the other models dont. Theres just less room for error.
- buboard 7y agoTons of small airlines in europe have failed in the past decades, but not because they couldn't be profitable. they usually exploit every cost-cutting corner, so they fail easily when oil prices or other rules change. They seem to be designed for that
- helij 7y agoWith two I flown (Ryanair and Wizzair) I never felt pushed to buy anything. Also, I checked and both are profitable.