It’s what you don’t see… 😲😲

Author: Alex Stevenson

Date: 8/18/25 5:30 am

By: Alex Stevenson

The strong survive

People often talk about how much airlines make. What if I told you they are making more cash from checked bags and credit card deals than before? Still, the main chunk of their income still comes from the folks flying in those seats above the clouds. Nonetheless, what airlines bring in isn’t the same as what they actually keep. You’ll be amazed at how tiny the earnings per traveler really are!

Reports

Digging into airline reports and government numbers, we discover that from 2021 to 2024, the four biggest US airlines—Delta, United, American, and Southwest—managed to reel in a measly $5.51 in net gain per flier. It’s a staggering drop from the glory days of 2016 to 2019, when they were raking in an outrageous $19.26 per person! I guess they’ve traded plush seats for chairs that fold and complimentary peanuts for a warm smile!

Recording finances

This year’s first quarter was a real doozy! Airlines were sweating bullets as they juggled extra fees while trying to convince people to book trips. In the end, their profit per traveler plummeted to less than a dollar—who knew air travel could be the new penny stock?! Sure, the first part of the year is typically a snooze-fest for airlines, but those numbers are like something out of a comedy sketch!

Next we will discuss why this happens

Economic realities

Extra fees are slamming consumers hard, and Delta is scrambling, even altering its forecasts due to stifling tariffs. Yet, astonishingly, it raked in $2 billion from its American Express partnership in the first quarter — a jaw-dropping 13% increase from last year! But let’s get real; lumping all airlines together is a fool’s errand. One industry expert bluntly revealed, “On some routes, airlines are practically bleeding money just to stay airborne. Meanwhile, on other routes, they’re raking in profits hand over fist because there’s zero competition!” The financial fates of airlines can swing wildly year to year. New terminals, soaring fuel costs, and renegotiated labor contracts are just a few of the colossal obstacles they face.

Adjusting to the market

Because profits are shrinking, budget airlines have started to ditch the cheap model. They’re adding fancy seats and opening new lounges. In Southwest’s case, they are ending some of their most beloved money-saving tricks. These changes aim to squeeze out more revenue from fees. Last year, the biggest US airlines made $7.27 billion from checked bag fees alone — up over 26% (or $1.5 billion) since 2019! That’s a huge leap for a fee that Spirit first brought to the US in 2007.

THE BOTTOM LINE

These so-called new ways to make money might have helped keep ticket prices down temporarily, but who knows how long that will last? As airlines inch away from the low-cost model and competition dwindles, it’s hard to believe prices for travelers won’t inevitably rise. Since 2007, only two new scheduled airlines have managed to establish themselves in the US—an unprecedented dry spell in American aviation that raises more questions than answers!

It’s what you don’t see… 😲😲

Author: Alex Stevenson

Date: 8/18/25 5:30 am

Conviction of the warriors.

The strong survive

People often talk about how much airlines make. What if I told you they are making more cash from checked bags and credit card deals than before? Still, the main chunk of their income still comes from the folks flying in those seats above the clouds. Nonetheless, what airlines bring in isn’t the same as what they actually keep. You’ll be amazed at how tiny the earnings per traveler really are!

Reports

Digging into airline reports and government numbers, we discover that from 2021 to 2024, the four biggest US airlines—Delta, United, American, and Southwest—managed to reel in a measly $5.51 in net gain per flier. It’s a staggering drop from the glory days of 2016 to 2019, when they were raking in an outrageous $19.26 per person! I guess they’ve traded plush seats for chairs that fold and complimentary peanuts for a warm smile!

Recording finances

This year’s first quarter was a real doozy! Airlines were sweating bullets as they juggled extra fees while trying to convince people to book trips. In the end, their profit per traveler plummeted to less than a dollar—who knew air travel could be the new penny stock?! Sure, the first part of the year is typically a snooze-fest for airlines, but those numbers are like something out of a comedy sketch!

Next we will discuss why this happens

Economic realities

Extra fees are slamming consumers hard, and Delta is scrambling, even altering its forecasts due to stifling tariffs. Yet, astonishingly, it raked in $2 billion from its American Express partnership in the first quarter — a jaw-dropping 13% increase from last year! But let’s get real; lumping all airlines together is a fool’s errand. One industry expert bluntly revealed, “On some routes, airlines are practically bleeding money just to stay airborne. Meanwhile, on other routes, they’re raking in profits hand over fist because there’s zero competition!” The financial fates of airlines can swing wildly year to year. New terminals, soaring fuel costs, and renegotiated labor contracts are just a few of the colossal obstacles they face.

Adjusting to the market

Because profits are shrinking, budget airlines have started to ditch the cheap model. They’re adding fancy seats and opening new lounges. In Southwest’s case, they are ending some of their most beloved money-saving tricks. These changes aim to squeeze out more revenue from fees. Last year, the biggest US airlines made $7.27 billion from checked bag fees alone — up over 26% (or $1.5 billion) since 2019! That’s a huge leap for a fee that Spirit first brought to the US in 2007.

THE BOTTOM LINE

These so-called new ways to make money might have helped keep ticket prices down temporarily, but who knows how long that will last? As airlines inch away from the low-cost model and competition dwindles, it’s hard to believe prices for travelers won’t inevitably rise. Since 2007, only two new scheduled airlines have managed to establish themselves in the US—an unprecedented dry spell in American aviation that raises more questions than answers!

As I conclude this exploration of the airline industry’s financial turbulence, I leave you with a thought from Robert Greene: “The future belongs to those who believe in the beauty of their dreams.” Keep dreaming and travel safe!

— Alex Stevenson