[OC] Flying home for the holidays? Take a look at the income statement breakdown of American Airlines to see where the money goeseva01beast t1_j0z6jse wrote
This must be the third airline post I've seen by you and all I can conclude is that either there isn't much money in operating airlines, or these companies are indulging in Hollywood levels of accounting.
pk10534 t1_j0zo8mw wrote
There really just isn’t that much money in the airline industry. It’s just expensive any way you look at it, from landing fees to repainting planes to fuel costs to plane orders…it’s an industry that operates on a very thin margin. Airlines can make more money selling miles and loyalty points to companies like Amex or Hertz than they can flying people in economy. And without first class or business class subsidizing the rest of the plane, prices would skyrocket or most airlines would have to go bankrupt.
globglogabgalabyeast t1_j119jqe wrote
That’s the breakdown I really want to see, showing all the profits from loyalty programs and selling points
KTBFFHCFC t1_j167bc1 wrote
Watch this. It explains how it works perfectly.
Obvious_Chapter2082 t1_j0zqwdt wrote
Most of them do operate on small margins, it’s why they’re one of the first industries bailed out during recessions. But they also have a lot of fixed assets, so they report a lot of non-cash expenses through depreciation
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