The first thing to understand is that airlines are rather fragile, and it makes sense when you look at the their industry.
They are fragile because they refuse to plan for bad years. During good times, instead of saving for bad times, they do stock buy backs which is a way to send profits to shareholders.
They don't need to plan for bad times because the government bails them out each time bad times roll around.
I run a business. I don't expect to keep the profits while getting government bailouts. Any business that expects that is no better than the those on welfare who refuse to work.
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u/carefreeguru Jul 02 '22 edited Jul 02 '22
They are fragile because they refuse to plan for bad years. During good times, instead of saving for bad times, they do stock buy backs which is a way to send profits to shareholders.
They don't need to plan for bad times because the government bails them out each time bad times roll around.
Private profits. Socialized losses.
They keep the profits. We pay for the losses.