Why the High Air Fares? Don’t Blame High Profits

In part because of high fuel costs, the global airline industry’s average net profit margin comes to less than $6 per passenger, according to figures released by the International Air Transport Association and reported in the Wall Street Journal. Other factors reducing airlines’ margins are a slump in air cargo and slack growth in high-margin business travel. In response, airlines are purchasing more fuel-efficient planes, slowing capacity growth, and packing aircraft more tightly than ever.