US Airlines Reinvesting But Profiting Less

Airlines in the US are investing around $1bn a month back into the industry, while keeping just six cents of profit for every dollar of revenue they make, according to trade organisation A4A (Airlines for America).

Airlines in the US are investing around $1bn a month back into the industry, while keeping just six cents of profit for every dollar of revenue they make, according to trade organisation A4A (Airlines for America).

In a statement, A4A said declining fuel and ticket prices are contributing to airlines investing in new aircraft, paying debts, rewarding employees and providing dividends to investors.

However, A4A warns that carriers’ six per cent profit margin falls below Standard & Poor’s average for businesses.

A4A said it also expects airlines to add nearly four per cent more seats for next spring as a result of increasing air travel demand, a rise of 100,000 seats year on year.

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