Post-9/11 losses were so bad that they wiped out all historical profits of US-based airlines

Old_Joe

"Four airlines control more than 80 percent of the American passenger market"

Here is a very detailed and balanced perspective on how and why US airlines have deteriorated to the pathetic service levels we experience today:

[Link to Vox article] Why flying in America keeps getting more miserable, explained: The 40-year rise and fall of airline competition.



"As of 2013 or so, the post-9/11 losses were so bad that they had wiped out more than 100 percent of all profits incurred by all US-based airlines in history. Over the past couple of years, a return to strong profitability has finally reversed the losses, but exploring them is critical to understanding why the present situation is so unsatisfactory."

We have met the enemy and he is us: "Wherever competition has reared its head in the industry, the mass market has aimed for low prices above all else."

PRESSmUP

I used to fly weekly, but that part of my life/career is now over. Flying now is a horrible experience, made better only by paying more via an upgrade using miles, the selection of "premium/economy seats", or the occasional splurge for 1st. TSA pre-check is a given.

From an investment perspective, I've made out quite well on the airlines...look at what Wellington has invested in with VHCOX among other related funds...big on airlines when it made no sense whatsoever.

msf

The Vox piece is an interesting narrative, though I wonder how some other facts fit in with it.

Southwest was not the only national airline to come out of Texas. Texas International competed with Southwest and in 1982 its parent company bought Continental, which it merged into Texas International, keeping the name Continental. Sounds somewhat like America West acquiring USAir, though Texas International's finances were different.
http://avstop.com/history/historyofairlines/texasairlines.html

Aside from Continental, Texas International is also famous (infamous) for some of its executives launching People Express (later merged into Texas International). People Express could give today's airlines a good run for their money for lack of service. "Despite the long lines [open seating] and uncomfortable seats, it had a cult following among passengers and industry experts who praised its no-frills approach as visionary. " (NYTimes, Feb 8, 2004.)

Known for its cattle call feel decades ago, this link below reminds us of some of People Express' nicknames: People Distress, Air Bulgaria.
http://avstop.com/history/historyofairlines/peoplexpress.htm

While many of the majors made acquisitions along the way, USAir has always struck me as different - a national airline cobbled together from lots of regionals. Allegheny in the mid Atlantic, Mohawk in the northeast, Lake Central in the midwest, PSA in California ...
http://www.sandiegouniontribune.com/sdut-timeline-of-major-events-in-us-airways-history-2013nov12-story.html

The airlines may all have evolved within the same broad industry conditions, but each seems to have developed in its own way. Unfortunately, they are all headed for the same lowest common denominator.