US AIRLINES
From 1990 to 1993, it was actually 3 years of big disaster specially because of the Gulf War, but also because of other many factors, like: the general decline in the world economy, aircraft fuel price increases, wages, work rules and work patterns, chapter 11 bankruptcy airlines, excess capacity, a very capital intensive business and too many years as regulated airlines.
In fact, during the Gulf war and recession in 1990-92, it took them four years to return to profit, even though traffic recovered within a year. The industry experienced a profit slump.
From 1994 to 1997, airlines have had to recognize the need for radical change to ensure their survival and prosperity, after what happened last in the last four years.
Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability: IATA airlines' profits were $5bn in 1996, less than 2% of total revenues. This is below the level IATA believes is necessary for airlines to reduce their debt, build reserves and sustain investment levels. In addition, many airlines remain unprofitable.
From 1999 to middle of 2001 is the period which the industry had experienced a resurgence in profitability.
From 2001-2005
The overall volume of business air travel demand decreased in 2001 due to the overall economic downturn.
The shock of September 11th has forced airlines to face an awkward fact: in some respects, aviation is a declining industry.
Air traffic in October and November 2001 was down by about 25% compared to the previous year in the world's biggest aviation market, because of a combination of recession and the attacks on September 11th.
International travel from America has been hit even harder: the number of Americans flying across the Atlantic is down by over 30%.
Never mind that more people are killed on America's roads every three months than have died in the
In fact, during the Gulf war and recession in 1990-92, it took them four years to return to profit, even though traffic recovered within a year. The industry experienced a profit slump.
From 1994 to 1997, airlines have had to recognize the need for radical change to ensure their survival and prosperity, after what happened last in the last four years.
Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability: IATA airlines' profits were $5bn in 1996, less than 2% of total revenues. This is below the level IATA believes is necessary for airlines to reduce their debt, build reserves and sustain investment levels. In addition, many airlines remain unprofitable.
From 1999 to middle of 2001 is the period which the industry had experienced a resurgence in profitability.
From 2001-2005
The overall volume of business air travel demand decreased in 2001 due to the overall economic downturn.
The shock of September 11th has forced airlines to face an awkward fact: in some respects, aviation is a declining industry.
Air traffic in October and November 2001 was down by about 25% compared to the previous year in the world's biggest aviation market, because of a combination of recession and the attacks on September 11th.
International travel from America has been hit even harder: the number of Americans flying across the Atlantic is down by over 30%.
Never mind that more people are killed on America's roads every three months than have died in the