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They have been underpricing themselves to maintain position against other companies. Regulations keep costs increasing. Unions keeps labor prices increasing.
by ipaddr 5y ago
They have been underpricing themselves to maintain position against other companies. Regulations keep costs increasing. Unions keeps labor prices increasing.
Did you expect your $200-300 cross-country flight to really give much of a profit to airlines after airport taxes, landing fees, fuel, maintance costs plus labor, insurances and everything else?
Those flights should cost 10x as much if you want the golden treatment fliers received in the 60s.
- cvbxcvsdfv 5y agoAnd yet first class tickets often do cost 10x as much, and you get little more than a hot towel and some liquor to shut you up.
- throw63738 5y agoRyanairs average flight price is $60 and this company is very profitable.
- intended 5y agoWarren Buffet has long since described the aviation industry as over competitive. This was decades ago, before the low cost airlines even entered the picture. Airlines are a great example of competition driving prices down for consumers.