A number of high-profile airlines have collapsed during the last five years. Back in 2017, Monarch called it a day, and so did Airberlin. In 2018, we saw Primera Air going belly up. However, it is 2019 that has really proven to be a troublesome year for airlines all over the world.
Wow Air, Aigle Azur, Adria, XL Airways, and Thomas Cook have ceased flying. That is not all, though, since these airlines are merely high-profile airlines. All of these airlines ended their operations in October or September. This is not a coincidence. On the contrary, there are some very good reasons behind what happened to these airlines.
In the context of timing for general airlines, the most profitable seasons are summers. It is during summers that the demand for airlines is in full effect. Therefore, it makes sense that the airlines collapse during a non-summer month. As soon as September comes, bookings tend to slow down, and with the reduction in booking, cash flow is also considerably reduced.
However, we need to ask why these bookings are slowing down and how come this expected slump is causing these airlines to go bankrupt? What follows is a video by Wendover Productions that will explain this matter in-depth and using clear illustrative matter.
We won’t be giving you the full picture over here. Instead, we suggest that you check out the video that has been created by Wendover Productions and learn for yourself why airlines are going bankrupt. Check out the video below, and do let us know what you think of it. Also, don’t forget to share it with your friends and family members.