"DALLAS ? After a decade of multibillion-dollar losses, U.S. airlines appear to be on course to prosper for years to come for a simple reason: They are flying less."
"Profit margins at big airlines are the highest in at least a decade, according to the government. The eight largest U.S. airlines are forecast to earn more than $5 billion this year and $5.6 billion in 2012."
"Fares in the U.S. have risen 14 percent from a year ago, according to travel consultant Bob Harrell. Flights are more crowded than they've been in decades. On domestic flights, fewer than one in five seats are empty. Space is even tighter over the summer and holidays. That's why it took a week to rebook all the travelers who were stranded by a snowstorm that hit the Northeast over Christmas weekend.
"Travelers also face fees these days for services that used to be part of the ticket price, such as checking luggage (usually $25 to $35 per bag) and rebooking on a different flight (usually $150 for a domestic flight, more when flying overseas)."
"From 2000 through 2009, U.S. airlines lost about $60 billion and eliminated 160,000 jobs, according to an industry trade group, the Air Transport Association."
"During that tumultuous decade, airlines were hit with a series of events beyond their control: two recessions; the Sept. 11 attacks; an avian flu outbreak that scared away many travelers, and rising fuel costs."
The industry was profitable in 2000, 2006 and 2007, when the economy was roaring. But those boom years masked the industry's underlying problems, including high costs and more seats than travelers demanded. During 2008 and 2009, airlines lost a combined $23 billion, but they were also attacking their problems, setting the stage for a comeback in 2010.
------- Though it should be noted that while airlines cut down the number of flights...that in turn increased demand which hiked up the fair prices. So, we're paying more than we were a decade ago.
They cut costs...but fees on everything...and even getting a glass of coke or a bag of peanuts on a flight now costs money. Its really a slap in the face at some points.
I wonder...if trains could make a comeback in the U.S. The airline industry stole the thunder from trains when they became too confident that airlines would not take off as a means of transportation. Now, we have a higher percentage of trains that transport goods more than people.
https://www.huffingtonpost.com/2011/01/25/us-airlines-make-money-ag_n_813646.html