Why the Airlines are Bankrupt (INFOGRAPHIC)

FrugalDad.com has put up an awesome Infographic on why airlines charge high fees for their services and at the end of the year, make very large losses. Yet another reason to invest your money elsewhere, but at least in Africa, aviation is booming, so some airlines in this region will continue making marginal profits.

A throw back to the years before 1978, American aviation was highly regulated including fares, schedules and routes. The only American airline that could fly international was PanAm and airlines then had to compete purely on services. With the deregulation came in new players and competitors and many airlines soon went under or filed for bankruptcy.

Airlines are also losing cash, lots of it, through Online Travel Agencies like Priceline, Orbitz, Expedia, Opodo. American Airlines alone paid 4% of their operating expenses to OTAs or an estimated $976million in 2010. Learn more on why your favorite airline filed for bankruptcy below:

Source: http://frugaldad.com

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