this post was submitted on 31 Jul 2024
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Airliner ticket prices used to be regulated. So when all airlines had to charge the same price, they had to find other ways to be competitive in order to bring in customers. Deregulation in the 70s brought ticket costs down but that means ticket cost is now the primary point of competition between airlines and amenities now come at a steep premium.
Yep, you can have it one way or the other...cheap flights or super luxury and only the rich can fly. Planes are not cheap to operate and fuel isn't free.
And CEO bonuses and shareholder dividends must always be high-flying.
But even with that margins are tight, so 99.5% of why your flight is expensive is that planes are not cheap to operate and fuel isn't free. But we can pretend it's all the other thing to maintain slave morality.
Also when was the last time an airline stock paid a dividend? I'm sure one of them pays dividends but most pay dividends never.
Delta is paying a dividend of $0.15 per share in August. Southwest paid $0.18 this month. Spirit used to pay $0.10 but I don't think they do any more.
So tight! Can barely afford to keep the plane in the air what with all the stock buybacks.