Why do airlines lose money so easily?

Simply put, airlines are low-profit industries and easy to lose money, but they have made great contributions to the development of the whole society. Airlines are actually the weakest in the whole industry, just like bus companies. First of all, the plane is not made by airlines, and you have to pay tolls when crossing the border. The airport also charges parking fees and various service fees. There are too many factors affecting airline profits, such as weather, politics and economy, which are beyond the control of airlines.

In the past two years, the loss of airlines was mainly affected by the high oil price cost and the global economic downturn, which led to the loss of major airlines around the world. Relatively speaking, China's civil aviation is profitable, because the economy is still growing, which is why so many foreign airlines are scrambling to open domestic flights.

But when it comes to contribution, after all, so much international trade and domestic trade need the support of airlines, as well as national politics, which is why many big airlines are protected by the government. Another factor is that airlines often cannot adjust quickly according to the economic situation, which has a lot to do with the overall fleet arrangement of airlines. Although some routes are losing money, because of the expensive traffic rights resources during flight take-off and landing, if they are abandoned, they will be gone.

Most international popular airports are saturated at the time of take-off and landing. If you decide to cancel the route, this take-off and landing time will be taken away by other companies immediately. When the economy recovers and you want to fly, it is entirely possible that your flight will not be able to take place because there is no suitable take-off and landing time. Airlines are losing money, not because there are too many idle people. Of course, streamlining the army and simplifying administration will definitely increase their income. The most important thing is that the oil price is really too expensive. Basically, the fuel cost accounts for half of the cost of all airlines.