Why is the airline industry going bankrupt?
The airline industry is an extremely unique and volatile industry. Net profits are heavily affected by the market price of oil, passengers’ disposable income and, in today’s world, the current terrorist threat environment.Oil PricesOil has always been a driving force in the aviation industry. The oil crisis of 1973 proved that oil supply manipulation, by OPEC, has a major impact throughout world economies.Disposable IncomeThe world passenger market also relies heavily on how much disposable income businesses and individuals have available for travel. Worldwide recessions have severe impacts on airline travel, as many see traveling as a non-necessity.Financial MeltdownThe U.S. financial meltdown of 2008 and the worldwide credit and debt crunch of 2008, has shaken the core of all industries in the world. Business travel bookings decreased by 2.7 percent in 2008.TerrorismPost September 11, 2001, terrorism has become a driving factor in airline passenger loads and net profits. The terroris
