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THE CHASE FOR LOWER YIELDS: Why do airlines keep doing this to themselves?

The airline industry has become well known for seemingly being unable to sustain profits. This is of course not true for all airlines. However, the general trend toward unsustainable profitability appears to be fairly consistent across the industry. While there are pressures and external market factors, we believe this trend is largely self-inflicted by the industry as a whole across the value chain and by airlines themselves. Overall yield trends Airlines have faced tremendous challenges with factor input costs, particularly with the cost of fuel rising significantly. To face these challenges, they have made tremendous improvements to lower operating costs – often driving down labour costs,

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