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Are plane tickets too cheap?


Complaining about plane fares and the long list of additional fees they bring along is America’s favorite trend to hate on.

But are we being too harsh on airlines?

Like everyone else, when I shop for a flight, I get frustrated about the cost of flying.

But as Lou from Beme news points out, we’re all too harsh on these airlines.

The margins on plane tickets, as it turns out, are extremely thin.

While American domestic flights average profitability in the mid teens, international airline profitability per tickets are often in the low single digits.

I’m not talking percentage points here.

Tickets in and out of the middle east average around $3 profit per ticket sold.

That’s a razor thin margin for flights.

No wonder so many airlines go out of business.

It’s an extremely competitive and cutthroat industry.

A significant portion of an airlines profit comes from those extra fees.

If you can manage to fly without those extra services, consider you are getting a great deal.

Those fees allow airlines to keep the primary ticket fares as low as possible.

If you do need the extra services, know you aren’t be gouged unfairly.

It’s how the airlines make a living in this tough era.

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