Does it pay for airlines to stay in business?

Question

If air lines keep on raising prices, requiring mandating how long someone stays in a certain place, adding fees for carry-on, charging for a sip of cola or juice, and other idiotic things like that, They are going to run themselves out of business. Why are they doing this? I have a trip to take for work to Tulsa and I am seriously thinking about driving. I am going to pay about the same in total gas that i will be charged for a ticket. Most likely more due to all the darn fees. If they are in that bad of shape, does it really pay to stay in business?

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Answer 1

well corporate customer usually couldn't care less, more expenses less tax, plus, unlike diriving which can be quite taxing and tiring, air transport is much quicker, plus you can do your work while flying. i think it's the budget airlines that will be worthwhile. Others, well, that's anybody's guess.....

Answer 2

As with any other business, as long as they are making a profit or have some chance of making a profit, then it pays for them to stay in business.  While you are right that if they continue to raise fares, they might eventually lose enough business to fail, most airlines, like any other business, track consumer trends very closely and as they reach that point, will make just the decision you are asking - does it pay to continue doing business in light of probable continued losses - if the answer is no, they will shut down.

However, don't forget that people are not the only thing airlines carry.  Many subcontract to the USPS and others to carry mail and small freight and this extra income may be enough to keep them flying.  Either way, it all comes down to income versus outgo.