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I don't understand why the consumer airline industry is in a perpetual state of bankruptcy. If the planes are "already packed", as you say, why don't they just
by w1ntermute 14y ago
I don't understand why the consumer airline industry is in a perpetual state of bankruptcy. If the planes are "already packed", as you say, why don't they just increase airfares to boost their profits?
- corin_ 14y agoBecause they are, for the most part, in a race to the bottom, and without price-collusion any single airline raising their prices would see them lose customers to their rivals.
- adaml_623 14y agoThat's a really good question and I suggest you google it. The query 'Why are airlines always bankrupt' makes for some interesting reading. I think the real question is... why do investors keep investing in something that historically has never made much money.