Question:
It seems like all the airlines have gone bankrupt at one point or another, and FlyI just announced that they would be selling the company next week. We obviously use the services of the airline, and you certainly pay for the seats, but why does it seem that none of the companies make any money? And if they don't, why would you even start an airline in the first place?

Answer:
Lots of prestige in owning your own airline.

You may discover a profitable route that is available for you to service. (Your can run an airline with only one plane and only one route)

On the other hand,

Crafts are EXTREMELY expensive to run/maintain/service

Fuel is extremely EXPENSIVE.

Pilots wages are EXTREMEMLY expensive.

Politics and newspaper headlines can SEVERELY DAMAGE your airline business. eg 9/11.

The industry is EXTREMELY competitive.

Majority of your business is from holiday makers/vaccationers every summer and is NEVER guaranteed.

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