Flying the Friendly Skies of Capitalism

The capitalist machine has come around once again. No industry, save perhaps the automobile industry, was in more dire need of a "supply and demand" correction than the airline industry. After nearly a decade, and billions and billions of dollars in losses, it appears that nearly across the board profits are going to be posted by the airlines. Yahoo.com reports "Profit margins at big airlines are the highest in at least a decade, according to the government. The eight largest U.S. airlines are forecast to earn more than $5 billion this year and $5.6 billion in 2012."

How did this turnaround come about you might ask. Well it's simple really. This turnaround has come at the expense of us, the air traveling public. In order to balance budgets, the airlines have slashed routes, grounded planes, and added fees for items that have routinely been included in the price of the ticket. Cutting routes and flights has allowed the airlines to charge more for seats. The price of tickets in the US has risen nearly 14% in 2010. Those fees that gradually starting showing up over the last few years, in 2010, they accumulated to over 4 billion in revenue for the airlines.

So the question becomes, what happens next. Does the airline industry fall in line behind the oil business and squeeze every last nickel from us, or do they do something that would benefit the flying public. Do they reinvest those profits into making the experience better for all of us? If they used that profit to ensure our bags get to where we are going, that would be a good thing. Maybe they could us it as incentive pay for pilots and crew with the best "on-time" record. Or maybe they could just use it to purchase new aircraft to replace an aging fleet. Any or all of these suggestions would take our money and invest in in such a way to make the experience better for all. In reality, I suspect we all know what will happen. Prices will continue to rise, service will continue to fall, and we will all be left wringing our hands.

Make no mistake about it. We are responsible for the turnaround. Faced with longer lines at security, higher prices for seats, and more and more fees to keep flying, that's exactly what we have done. We keep flying. The morally questionable part of the equation is that for a lot of individuals, flying isn't an optional expense. In the current state of this global economy, more and more jobs require travel. If the leisure traveler decides a ticket price is too high, they can choose not to take the flight. But for many business executives, it's not a matter of if they will fly, but when. Their choice is made for them. The airlines are profitable now, and they've got a captive audience that needs their service. That's what capitalism is built on, for good or bad.

So over the next year as you pay your $25 to check your bags, or click "Purchase" for the $200 flight you took in 2008 for $79, give yourself a hearty pat on the back. You're helping to save an industry.