This week’s Economist magazine has an excellent survey on air travel with some scary figures
– since 2001, the industry has incurred losses of $40bn collectively, mostly in the USA
– it owes $200bn
– Last year, the industry broke even & is forecast to make $1.5bn next, which means a 1.1% net margin on gross revenues of $473bn
Aside from a few star financial performers, most of the industry fails to cover its cost of capital, despite the industry reaching a record 76% load factor average.
Worried about crashing – who’d be an (long position) investor in most airlines?