The headline says it all.
Last year the world wide loss for airlines was $11 billion. That’s more the the annual budget for some small countries. And it is the old fashioned stand by traditional airlines that lost the most.
Amazingly there are always new people with lots of cash in their pockets lined up to invest in yet another money loser, although every new upstart believes they have a better formula.
And it is clear the formula of the low cost carriers is working better than the tradional airlines.
But is that just because the old carriers are doing something wrong?
Not entirely, although they can in part be blamed for their own woes.
More significantly however, the corporate traveller is yet to come back. They were the geese that laid golden eggs, paying for business class tickets at best and last minute full fare carriage at worst.
As the economy soured corporations put a huge vice on company travel.
And they put restrictions on the kind of fares their employees could use when they did go away on business.
The bigger they are the harder they fall.
British Airways is going through a terrible time and Japan Airlines couldn’t make it without restructuring.
Major hotel chains are also suffering with the growth coming from the less expensive brands only, as the business traveller has become accustomed to simpler tastes in rooms and hotel service.
There are signs that some of the business travel is coming back but they are weak signs and it seems that only the oil producing nations are still into the high life travel North Americans had become accustomed to in the past.