Airlines Rake in Cash as Fares Stay Cheap. What’s Wrong With This Picture?
It’s a strange time in the airline industry. Wall Street can’t seem to say enough bad things about carriers awash in profits. The four largest U.S. airlines banked $4.1 billion this spring, but saw revenues slide about 2 percent industrywide due to an avalanche of cheap fares, a notion some analysts call pricing dysfunction. On Friday, American Airlines Group Inc. became the latest to join the “best of times, worst of times” club, announcing a $1 billion second-quarter profit on revenue that was nevertheless down 4.3 percent.
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