Why So Many Airlines are Going Bankrupt

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  • Published: 08 October 2019
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    Animation by Josh Sherrington
    Sound by Graham Haerther (http://www.Haerther.net)
    Thumbnail by Simon Buckmaster

    Music by http://epidemicsound.com
    Select footage courtesy the AP Archive

    References:
    [1] https://www.airlines.iata.org/news/iata-forecasts-355bn-net-profit-for-airlines-in-2019
    [2] https://blog.aci.aero/airport-markets-and-seasonal-variations/
    [3] https://www.macrotrends.net/stocks/charts/RYAAY/ryanair-holdings/gross-profit
    [4] https://voxeu.org/article/eu-s-insolvency-reform
    [5] https://www.ft.com/content/15ecdab8-c960-11e9-a1f4-3669401ba76f
    [6] https://www.ft.com/content/986c4e6e-db81-11e9-8f9b-77216ebe1f17
    [7] https://twitter.com/tcairlinesuk?lang=en
    [8] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [9] https://web.archive.org/web/20190514055927/https://en.wikipedia.org/wiki/Palma_de_Mallorca_Airport#Airlines_and_destinations
    [10] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [11] https://www.seatguru.com/airlines/Malaysia_Airlines/Malaysia_Airlines_Airbus_A380_new.php; https://www.flightradar24.com/data/aircraft/9m-mnf

Comments • 3 833

  • Aman Panda
    Aman Panda  47 minutes back

    Kind of forgot to mention Asian airline collapses.

    • Kalas Atwater
      Kalas Atwater  48 minutes back

      They have to lower their prices

      • Michael O'Keefe
        Michael O'Keefe  2 hours back

        I played airline simulator and airline bankrupt
        MISSION FAILED!!!!!!!

        • Studa Baker
          Studa Baker  3 hours back

          I've flown on 3 defunct airlines: Eastern, TWA, Midwest Express

          • ALBER PAJARES
            ALBER PAJARES  4 hours back

            Cause people crash us down,.. socialism, anti-liberalism, jerking,..

            • Smiley TV
              Smiley TV  5 hours back

              Thomas Cokks history was 150 years not 50

              • B737FLY
                B737FLY  5 hours back

                As far as Cook is concerned... I feel you missed a big reason for their downfall. Huge overhead. Whereas most airlines moved to the online environment for ticket sales, Cook had a shitload of brick and mortar locations and agencies. Dinosaur style....

                • Jesus Gonzalez
                  Jesus Gonzalez  5 hours back

                  You failed to mention Germania, a leisure carrier which failed in February, not autumn...

                  • Remo Kiltol
                    Remo Kiltol  5 hours back

                    Cough cough, jet airways, Air India, Kingfisher airlines, all from India.

                    • Azraai Azuha
                      Azraai Azuha  5 hours back

                      Fellow proud Malaysians, where you at?! 🇲🇾

                      • Flash 🇿🇦
                        Flash 🇿🇦  5 hours back

                        I actually watched a Thomas Cook plane loaded and taking off on the 13 October 2019 at YVR Vancouver 🤔...
                        (https://i.imgur.com/OfyvrZf.jpg) I heard about the bankruptcy in September, so I found it pretty odd. Maybe they've already re-leased the planes leased by Thomas Cook?

                        • Apfelbaumuniversum 69
                          Apfelbaumuniversum 69  6 hours back

                          You even forgot Germania which went bankrupt in 2019

                          • just1desi
                            just1desi  8 hours back

                            Are you on another channel? You’re voice is really familiar

                            • TNARG 1998
                              TNARG 1998  8 hours back

                              what font do you use?

                              • Karl Hans
                                Karl Hans  8 hours back

                                better no airplane flying because there destroy the earth by creating polution

                                • Mr. Cheesecake
                                  Mr. Cheesecake  10 hours back

                                  What's about Germania?

                                  • Hxcgangster2011
                                    Hxcgangster2011  11 hours back

                                    I blame uber

                                    • Dorian G
                                      Dorian G  11 hours back

                                      And then you have Croatia Airlines which has soo much debt, isn't profitable, and yet the government is giving tens of millions of taxpayers' €€€ to save it.😫

                                      • Si4mon
                                        Si4mon  11 hours back

                                        Sam, I have already written you a DM on your instagram but I got no reaction.. I am looking for the references of the two other flight videos you made "How airlines price tickets" and "How budget airline works". I really need it for my studies, we have to do a seminar work and we are only allowed to use scientific literature. It would be a great help for me.

                                        • Gregorio Lobato
                                          Gregorio Lobato  11 hours back

                                          Answer: Ronald Raegan

                                          • Romeo
                                            Romeo  11 hours back

                                            We have other modes of transport in Europe, the competition is split between air, rail and road. That's why the seasonality is higher during the summer - more long distance demand.

                                            • Bhoom !
                                              Bhoom !  12 hours back

                                              You missed Jet Airways bankruptcy

                                              • Alpali
                                                Alpali  12 hours back

                                                It's the middle of October and I'll be damned if Norwegian Air survives the next two weeks.

                                                • The Q
                                                  The Q  12 hours back

                                                  Railroads be like:
                                                  "I've been looking forward to this."

                                                  • Jesus Gonzalez
                                                    Jesus Gonzalez  5 hours back

                                                    Funny thing is: All those American business pax in aviation? Yeah, they're taking the train in Europe...

                                                • Forza223 Bowe
                                                  Forza223 Bowe  12 hours back

                                                  Airlines are not profitable businesses

                                                  • Pranav Singanapalli
                                                    Pranav Singanapalli  13 hours back

                                                    looks at only european airlines that have gone bankrupt and says notice how all the airlines that went bust were European

                                                    • Queerzie
                                                      Queerzie  13 hours back

                                                      It's heartbreaking when I think of all the brothers and sisters working for these airlines, I almost cried. So sad!!

                                                      • Bob Kraft
                                                        Bob Kraft  17 hours back

                                                        They go bankrupt because of PISS POOR MANAGEMENT

                                                        • Peter Widia
                                                          Peter Widia  18 hours back

                                                          In 8:43, did anyone else expect him to say "this business model is a rather new phenomenon made possible by *sponsor*" 🤣🤣

                                                          • Ulysses Lee
                                                            Ulysses Lee  18 hours back

                                                            coz European Airlines almost rely on weather

                                                            • Zenochka Gaming
                                                              Zenochka Gaming  18 hours back

                                                              India has jet Airways too

                                                              • Amri Hakimi
                                                                Amri Hakimi  18 hours back

                                                                8:39, leaving this for future reference

                                                                • Shrey Bahuguna
                                                                  Shrey Bahuguna  18 hours back

                                                                  Jet airways went away as well. Would love it if you did a video about the aviation industry in India!

                                                                  • Gary Hawkins
                                                                    Gary Hawkins  19 hours back

                                                                    Outrageous fuel prices and solid gold commodes in a certain part of the world

                                                                    • James KNIGHT
                                                                      James KNIGHT  19 hours back

                                                                      P a s s e g e r s

                                                                      • Niska Magnusson
                                                                        Niska Magnusson  20 hours back

                                                                        clearly they aren't extorting people enough for pre-boarding

                                                                        • Noriel Sylvire
                                                                          Noriel Sylvire  20 hours back

                                                                          Winter is coming

                                                                          • Jayashri Venketasubramanian

                                                                            This is one of my favourite videos of yours! Thanks for your amazing content :)

                                                                            • Exotic
                                                                              Exotic  21 hours back

                                                                              When UNITED goes bankrupt:






                                                                              *Yeetus Feetus*

                                                                              • Shady Brady
                                                                                Shady Brady  21 hours back

                                                                                In other words, American airlines don't have this problem because Americans run businesses, work, and actually have money to spend. Capitalism wins again.

                                                                                • Jesus Gonzalez
                                                                                  Jesus Gonzalez  5 hours back

                                                                                  European business travelers by and large take the train.

                                                                              • BLx Droid
                                                                                BLx Droid  21 hours back

                                                                                Europe is bad for doing business is because of EU's unnecessary regulations.

                                                                                • Maarten van der Poel
                                                                                  Maarten van der Poel  22 hours back

                                                                                  Ryanair still going strong haha

                                                                                  • Kartik Setia
                                                                                    Kartik Setia  23 hours back

                                                                                    Jet Airways also went bankrupt in India.

                                                                                    • J W
                                                                                      J W  1 days back

                                                                                      Cause they jacked their prices so high people stopped travelling

                                                                                      • refresh fresh
                                                                                        refresh fresh  1 days back

                                                                                        Jetstar just went bankrupt btw

                                                                                        • Geo Jeff
                                                                                          Geo Jeff  1 days back

                                                                                          Keep the governments out of airlines and investors won’t be so risky. To many government backed loans. Socialism always fails. Central banks always find there real value of $0.00.

                                                                                          • esparda07
                                                                                            esparda07  1 days back

                                                                                            10:00 That lady with the red luggage just wants to see the world burn.

                                                                                            • Bailey Hellmuth
                                                                                              Bailey Hellmuth  1 days back

                                                                                              Qantas only survives & makes bank because it pays no tax & charges more to fly regional domestic than internationally.