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How can airlines move billions of people and still make almost nothing?
[Repost from AirLab] Airlines are projected to make a record USD 41 billion next year. That sounds massive until you divide it by passengers. The profit comes out to about $7.90 per person, less than what Apple makes on a phone case. Apple earns over $150 per iPhone sold. Hotels often run margins between 20 and 40 percent. Credit card companies sit at around 25 percent. Software companies can exceed 70 percent. The net profit margin of the industry remains unchanged at 3.9% in 2025. (it never went higher then 5%) In my days at WestJet in revenue, we'd hit some quarters of 10-12%, and we were considered one of the best in the world! Of course, next quarter, it would dip to -3%... Everyone around air does well. Airports, credit cards, aircraft manufacturers, loyalty programs, and booking platforms all extract value. Airlines carry the risk, absorb the disruption, and operate on margins under 4 percent. This explains why fees keep rising, service feels thinner, and policies get stricter. It is not greed. It is survival in an industry that has almost no room for error. When you see air this way, expectations shift and strategy gets clearer. What changes in how you think about air when you realize how little airlines actually make per passenger?
How can airlines move billions of people and still make almost nothing?
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Welcome to the community! Start here ⬇️
If you are still new to Skool, let me introduce you! 𝘚𝘬𝘰𝘰𝘭 𝘪𝘴 𝘢𝘯 𝘰𝘯𝘭𝘪𝘯𝘦 𝘦𝘥𝘶𝘤𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘱𝘭𝘢𝘵𝘧𝘰𝘳𝘮 𝘸𝘩𝘦𝘳𝘦 𝘱𝘦𝘰𝘱𝘭𝘦 𝘤𝘢𝘯 𝘨𝘢𝘵𝘩𝘦𝘳, 𝘭𝘦𝘢𝘳𝘯 𝘢𝘣𝘰𝘶𝘵, 𝘢𝘯𝘥 𝘥𝘪𝘴𝘤𝘶𝘴𝘴 𝘵𝘩𝘦𝘪𝘳 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦𝘴 𝘸𝘪𝘵𝘩𝘪𝘯 𝘢 𝘤𝘰𝘮𝘮𝘶𝘯𝘪𝘵𝘺 𝘴𝘦𝘵𝘵𝘪𝘯𝘨 𝘢𝘣𝘰𝘶𝘵 𝘢 𝘤𝘦𝘳𝘵𝘢𝘪𝘯 𝘵𝘰𝘱𝘪𝘤. So hop into the general discussion chat and introduce yourself! 1) What is your favorite place to travel? 2) What is your strength that makes you stand out to your clients? Then : head on over to the classroom which will guide you to our live webinars Best practices: ⭐️ Welcome new members ⭐️ Make helpful posts ⭐️ Share your wins ⭐️ Engage in the community to level up and win monthly prizes! 🥳 Join an established community of over 20K advisors and mentors in the Travel Industry, working on using Skool as a new opportunity. See you inside!
Welcome to the community! Start here ⬇️
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Activity/Engagement in the Community = Prizes 🎉
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Exoticca deals calling my name
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