Although you may be delighted to learn that this year you can bring snowglobes, cakes and pies with you on your flight to visit Grandma for Thanksgiving, let’s now take a look at another recent story from the airline industry that sheds light on its woeful state of profitability. Readers of my book, Slingshot, already know that the airline industry is brimming with untapped potential to enrich the lives of customers and to increase profits. For example, the creation of a frequent flyer program in which passengers earn more points the less luggage they bring.
Yet it seems the airline industry is content to maintain the status quo and to tread water in a bloody, red ocean of painfully low profit margins. Via the Associated Press:
Collectively U.S. airlines' revenue rose 5.6 percent in the first nine months of this year. Fuel costs rose by 6.2 percent, cutting the amount earned per passenger. On average the 10 largest U.S. airlines made just 50 cents for every passenger they flew from January through September, Airlines for America said.
[Original image from Slingshot.]