When they make you pay for everything their margins go up. And if they succeed they have a lot of flights. If you have a lot of flights that make a small profit, you end up making a large profit
By charging add ons/extra fees for seats, baggage, rebooking, and with their business model of buying or leasing only one type of aircraft to simplify training for crews and maintenance, as well as only having profitable routes by filling up every seat.
Wendover did a video on it (it's called: _How airlines quietly became banks.)_ It's a really interesting watch. The airlines are basically worthless. It's their frequent flyer programs that have value. Essentially, the idea is that they can sell miles to credit card companies, that they in turn give to their customers as a reward. The rewards programs are basically printing money. They just need an airline to shuttle people so they can spend the miles. It doesn't matter if the airlines are profitable or not, because the rewards programs make so much money. During covid, when the airlines were looking for loans to stay afloat, the banks wouldnt take the airline itself as collateral, because the airline is technically worth negative money. They wanted the rewards programs as collateral, which is technically a different company. Look it up. You can't post links on shorts, you literally have to look it up. I can't feed it to you. Edit: typo.
What she said is actually somewhat true. (I am a tourism graduate) Airlines have different business models and the one she is talking about is the domestic flights in the US as flying is the most preferred way of travelling around the country, that's why people in the US afford the frequent flyer programs. It's a different story though when it is a long haul international flight/or a budget airline.
Yeah and it’s not worth it unless your company is paying for it. Anyone spending $8k on an airplane seat should have their bank account privileges revoked 😂
This may be the way in the USA but flying from Europe long haul costs me about 2.5 times the cost of economy, but i get the space that 4 economy seats get and a lay flat bed. For example i will be flying from Oslo to Bangkok with Etihad and its just over £1700 return. I also get great lounges, priority check in and boarding/disembarking. food on demand. real plates and cutlery, champagne and wines included and so on. On the new A1000 a cabin door that closes.
Premium economy is the most profitable cabin on long haul flights. But on short haul airlines like Spirit, Ryanair, Allegiant, and Easy Jet all make money on the fees such as luggage, snacks, drinks, and seat selection.
Like property and casualty insurance companies lose money by writing insurance. They make money by investing your premiums. I've worked for one of the major carriers for 23 years. For every dollar we take in from premiums, we pay out around a dollar and a few cents. That's the same with other carriers as well.
Most airlines offer 4 classes of seating? Well sorry but it's wrong... Just a few airlines have first class, most of them have economy + business or economy + premium economy + business
The reason budget airlines make a lot of money is because they charge for basically everything outside of the basic ticket. Want to bring a suitcase? Extra money. Want any food or drinks? Extra money, etc.
A little extra…. Last time I flew business my company paid $8,500 for the seat. You wouldn’t catch my dead paying that out of my own wallet for an airplane seat. It’s nice, but definitely not worth it if you’re paying by yourself
I've always wondered what would happen if they made an airline with ALL the seats spacious. Make them 4 wide instead of 6 wide, with 20% more leg room. That would be 20 seats where there are currently 36 seats. Charge 40% more for tickets. Any lost revenue would be offset by the fact that the plane would run much lighter with 45% fewer people and correspondingly less luggage and less food/drinks served. For a longer flight, I would do this in a heartbeat.
The most profitable class is the "premium economy" class as per the latest reports. It makes 6% more revenue than business class and 33% more than economy. First class is just all intensive, so they're not making anything extra.
I mean, she's not wrong. Loyalty programs are where airlines make their money. They don't make much at all on the economy air fair. Major airlines will put their loyalty programs up for collateral when taking out loans.
Sorry, this video is so off and wrong. I work with an accounting firm that does United Airlines books and what they make in regular seating is the bulk of profits as well as cargo
I don understand why business class and first class is infront of the plane which if the plane crash the impact will start from the front and the most back of the plane is the most safest in the crash. Could anyone pilot tell me why?
Normal airlines don't have first class suites like you show, personally I'd only buy first class if I got to pick who I sit next to. If there's a supermodel who's recently single, I want the seat next to her. Might get a chance to chat, would be rare and not always work; but it only has to work once. Sadly, if they don't fly private; they probably do get those first class suites.
This year they are making a fortune. Plane tickets are more than double what they were 4-5 years ago, even though fuel price are lower and more ppl are travel more than ever
Cargo kiddo….CARGO!!! They haul cargo under the plane. Oh and GOVERNMENT SUBSIDIES!!!! If airlines charged what people should really be paying no one could afford an airline ticket.
I can tell you that the truth is that the tickets usually only cover the cost of flight. The airline is making the real money from Cargo that goes into the plane with your luggage
Wrong. They make plenty off the ticket. Especially since you pay for every pound you take on the plane. Tickets used to be cheaper, and you could take 75 pounds, and up to 3 bags. Now tickets are expensive, you pay for everything, and the seats are plastic, covered in less than an inch of foam. When I traveled in the late 80's, early 90's, we had comfortable seats, with plenty of leg room. Now they want to pack people like sardines.
If you routinely fly with the same airline to get to and fro, it's a win/win. The airline's making money by having you choose them every time. And you're saving money by redeeming your points. So why must we act as if we're being ripped off? Delta won because I paid the full fare to take two flights to Europe, about a dozen domestic flights, and used my Delta/American Express card on most of my purchases. I won because I paid zero interest by paying in full every month, I redeemed my points for three free flights and a few first class upgrades, and I always checks my bags for free. But if you're going to book flights to places you have no interest in going just for the sake of accumuting points or if you go into credit card debt with your airline credit card, then you're losing.
Uhmmm….. Cargo is actually the better source of revenues for most Airlines, especially the low cost Airlines. To think that an International “one way ticket” cost just as much nowadays as what it used to cost 30yrs ago, while everything else cost much more than it used to (especially Jet fuel), it should not be a surprise to anyone when Airlines try to recoup that difference in a plethora of amenities (i.e, checked bags, drinks and food on board, etc..) Not trying to be the Airlines’ advocate here, but something has got to give. They’re not government subsidized entities after all. They are “profit driven corporations”.
That's the biggest lie in the world. Jane Ann exclusively first class airline. Now name an exclusively economy airline. I think you are who subsidizes whom there.
She basically said nothing, I wonder how the low cost carriers make money as they offer only economy class....
Luggage 🧳
All the small little fees as well as bare minimum service.
When they make you pay for everything their margins go up. And if they succeed they have a lot of flights. If you have a lot of flights that make a small profit, you end up making a large profit
By charging add ons/extra fees for seats, baggage, rebooking, and with their business model of buying or leasing only one type of aircraft to simplify training for crews and maintenance, as well as only having profitable routes by filling up every seat.
Ancillary services make airlines profitable. Especially the low cost and ultra low cost carriers.
Perfect example of "How to say something without saying anything".
Thanks for the video. Learned nothing from it but wasting our time.
She doesn't have a clue of what she is talking abouy
i agree
Wendover did a video on it (it's called: _How airlines quietly became banks.)_ It's a really interesting watch. The airlines are basically worthless. It's their frequent flyer programs that have value.
Essentially, the idea is that they can sell miles to credit card companies, that they in turn give to their customers as a reward. The rewards programs are basically printing money. They just need an airline to shuttle people so they can spend the miles. It doesn't matter if the airlines are profitable or not, because the rewards programs make so much money.
During covid, when the airlines were looking for loans to stay afloat, the banks wouldnt take the airline itself as collateral, because the airline is technically worth negative money. They wanted the rewards programs as collateral, which is technically a different company.
Look it up. You can't post links on shorts, you literally have to look it up. I can't feed it to you.
Edit: typo.
My thoughts exactly. Business has the best Return, but economy has the highest profit rate because of its sheer amount of
I agree
What she said is actually somewhat true. (I am a tourism graduate) Airlines have different business models and the one she is talking about is the domestic flights in the US as flying is the most preferred way of travelling around the country, that's why people in the US afford the frequent flyer programs. It's a different story though when it is a long haul international flight/or a budget airline.
She is proof not everyone should have access to upload onto this platform
Well thats 38 seconds ill never get back
Not only that. 38 seconds of incorrect information 😂
Well you took even longer than that to comment, so you clearly don’t care about wasting your time
@@couchpotatoes5158 she’s not gonna sleep with you buddy.
So Business Classes only point is to have 30% more legroom? Has she ever flown business?
Exactly my thought, how can one lie flat seat have only 30% more legroom than economy?
Yeah and it’s not worth it unless your company is paying for it. Anyone spending $8k on an airplane seat should have their bank account privileges revoked 😂
Maybe she’s flown domestic first and decided that’s what business class is 😂
That’s Domestic First
True Business Class is on either Cross Country or International Routes
@@couchpotatoes5158I disagree, traveling overseas with a lie flat is a game changer.
This may be the way in the USA but flying from Europe long haul costs me about 2.5 times the cost of economy, but i get the space that 4 economy seats get and a lay flat bed. For example i will be flying from Oslo to Bangkok with Etihad and its just over £1700 return. I also get great lounges, priority check in and boarding/disembarking. food on demand. real plates and cutlery, champagne and wines included and so on. On the new A1000 a cabin door that closes.
Premium economy is the most profitable cabin on long haul flights. But on short haul airlines like Spirit, Ryanair, Allegiant, and Easy Jet all make money on the fees such as luggage, snacks, drinks, and seat selection.
Like property and casualty insurance companies lose money by writing insurance. They make money by investing your premiums. I've worked for one of the major carriers for 23 years. For every dollar we take in from premiums, we pay out around a dollar and a few cents. That's the same with other carriers as well.
Most airlines offer 4 classes of seating? Well sorry but it's wrong... Just a few airlines have first class, most of them have economy + business or economy + premium economy + business
I can tell you this Low coast carriers like JetBlue and Southwest make the money just fine with their basic fares
The reason budget airlines make a lot of money is because they charge for basically everything outside of the basic ticket. Want to bring a suitcase? Extra money. Want any food or drinks? Extra money, etc.
When you add in the extras, actually cost more than a mainline tower and more than southwestern JetBlue nine times at a time
This girl has no idea what she’s talking about
“Airlines making virtually no money off your ticket”
That’s not correct at all.
My literal first initial thought😂
That’s their number one source of income 😭😭😐
You forget , cargo is a huge revenue generator for airlines
And isn’t economy also the most profitable cabin? It generates a ton of money for cut down costs and weight overall…
There are more airlines offering premium economy than first class. First class is not affordable not even for most airlines.
Many modern day business class seats on widebodies are already about the same as first class
My business seat is literally a bed…well worth a little extra for a comfortable 8.5 hour flight
A little extra…. Last time I flew business my company paid $8,500 for the seat. You wouldn’t catch my dead paying that out of my own wallet for an airplane seat. It’s nice, but definitely not worth it if you’re paying by yourself
I've always wondered what would happen if they made an airline with ALL the seats spacious. Make them 4 wide instead of 6 wide, with 20% more leg room. That would be 20 seats where there are currently 36 seats. Charge 40% more for tickets. Any lost revenue would be offset by the fact that the plane would run much lighter with 45% fewer people and correspondingly less luggage and less food/drinks served. For a longer flight, I would do this in a heartbeat.
Business class is the way to go. Never flown first or premium economy before.
The most profitable class is the "premium economy" class as per the latest reports. It makes 6% more revenue than business class and 33% more than economy. First class is just all intensive, so they're not making anything extra.
That 30% extra leg room is so nice. It's worth it.
What sense did you make in the video? Explained NOTHING in the end!
BS Vid of no value, but they have +use the right name ' Hustle'
I mean, she's not wrong. Loyalty programs are where airlines make their money. They don't make much at all on the economy air fair. Major airlines will put their loyalty programs up for collateral when taking out loans.
She’s right tho. Tell me what she said that’s wrong
What airlines miles have most value
Sorry, this video is so off and wrong. I work with an accounting firm that does United Airlines books and what they make in regular seating is the bulk of profits as well as cargo
Why you use logo of hubspot?
Actually few airlines have 4 clases! Most airlines have 2-3 classes!
I don understand why business class and first class is infront of the plane which if the plane crash the impact will start from the front and the most back of the plane is the most safest in the crash. Could anyone pilot tell me why?
Incredibly rare to find an airline thay offers all 4 classes😂
Yeah like delta airlines has first class and then it's only certain routes like MSP or O'Hare to Paris and then the price is $10k each way
I was gonna subscribe, however since there was no value or actual explanation.. well, cya! 😂
I came to the comments to comment on how nothing was said in the video but I’m glad ppl have beat me to the punch
Welcome to “I did not do business but still wanna talk about business even if I know nothing about it”
As somebody who is 6 ft 4, 30% more legroom is a necessity.
Normal airlines don't have first class suites like you show, personally I'd only buy first class if I got to pick who I sit next to. If there's a supermodel who's recently single, I want the seat next to her. Might get a chance to chat, would be rare and not always work; but it only has to work once. Sadly, if they don't fly private; they probably do get those first class suites.
This year they are making a fortune. Plane tickets are more than double what they were 4-5 years ago, even though fuel price are lower and more ppl are travel more than ever
Ryanair is the most profitable airline, with only economy seats and no loyalty program, and still has very low fares lol
They charge you for everything else.
@@benderandownzthat’s where the money is baby
No mam it’s economy class makes airlines revenue I work emirates and Lufthansa
Cargo kiddo….CARGO!!! They haul cargo under the plane. Oh and GOVERNMENT SUBSIDIES!!!! If airlines charged what people should really be paying no one could afford an airline ticket.
I can tell you that the truth is that the tickets usually only cover the cost of flight.
The airline is making the real money from Cargo that goes into the plane with your luggage
Exactly. Southwest has only 1 class
Fees. That’s where airlines make money.
I just thought my dumb brain didn’t understand this short but I was wrong 💀
Doesn't sound rigth because Wizzair and Ryanair make a great profit with only 1 class
You didn't explain anything except why I should tell RUclips to stop showing me anything from this channel.
Not when u book a flight literally before a few hrs before and u pay 200% more 😂
Most money per square meter is not Business but Premium Economy.
Literally mentioned NOTHING about where they make the most money. ANCILLARY REVENUE!
Wrong. They make plenty off the ticket. Especially since you pay for every pound you take on the plane. Tickets used to be cheaper, and you could take 75 pounds, and up to 3 bags. Now tickets are expensive, you pay for everything, and the seats are plastic, covered in less than an inch of foam. When I traveled in the late 80's, early 90's, we had comfortable seats, with plenty of leg room. Now they want to pack people like sardines.
After reading the comments I’m happy to not be the only one who thinks this video is absoloutly dumb
Airlines make money by you being on the plane and have a plane ride.
They lose money if the plane doesn't do anything or flies empty.
If you routinely fly with the same airline to get to and fro, it's a win/win. The airline's making money by having you choose them every time. And you're saving money by redeeming your points. So why must we act as if we're being ripped off? Delta won because I paid the full fare to take two flights to Europe, about a dozen domestic flights, and used my Delta/American Express card on most of my purchases. I won because I paid zero interest by paying in full every month, I redeemed my points for three free flights and a few first class upgrades, and I always checks my bags for free. But if you're going to book flights to places you have no interest in going just for the sake of accumuting points or if you go into credit card debt with your airline credit card, then you're losing.
Actually the most profitable for an airline is premium economy not business. Fyi
Most airlines only have business cleverly have 1st
Ryanair with 5 dollar seats: 😅
We really live in a time when you can be dumb and proudly make a video about it
What did she say.
Why I fly Southwest when I can't drive.
Well duh those free miles aren’t free for the airline but they’re free for us the flyer
they make money thats why they are there....
Uhmmm….. Cargo is actually the better source of revenues for most Airlines, especially the low cost Airlines.
To think that an International “one way ticket” cost just as much nowadays as what it used to cost 30yrs ago, while everything else cost much more than it used to (especially Jet fuel), it should not be a surprise to anyone when Airlines try to recoup that difference in a plethora of amenities (i.e, checked bags, drinks and food on board, etc..)
Not trying to be the Airlines’ advocate here, but something has got to give. They’re not government subsidized entities after all. They are “profit driven corporations”.
Most American Airlines these days are just credit card companies that fly planes
Yeah i stopped listening after she said that most airlines have a first class
It's the Hustle Channel...😂
That's easy, they ignore labor contracts because the law let's them
sky condo here
No actually they earn more from premium economy seats
"feel bad for the corporation"
I could be richer than Boeing itself and I’ll still fly economy
Meanwhile all the low cost economy airlines are wracking better profits than others
I can't believe that
I rewatched two times, still nothing, just some random statements after eachother
I don’t think you’ve heard of emirates
Your talking pure scutter love
nope, they make the most off premium economy
yeah they basically gift you the ride, sure
I should not have to pay more just because I'm tall, that's discrimination
I didn't even get what ever tf you said
the problem is tax deducted so the poor pay for the business class anyways because the tax avoidance is passed down the line
Free miles what? Thats profitable on this timeline ❤
cattle class, economy class, milked people class, 1% class
That's the biggest lie in the world. Jane Ann exclusively first class airline. Now name an exclusively economy airline. I think you are who subsidizes whom there.
You didn't explain anything....
Very few airlines offer First Class, and the ones that do, are doing away with them.
The hustle channel is the name of this???😂😂😂😂😂😂
Actually they lose money on people or break even it’s the cargo under yall that makes money
premium economy 😂not bussiness class (I'm pilot)
Nowadays airlines makes more money selling their miles to banks partner that fuel credit card rewards
Cargo is how they make money
Bro. No one cares which seating turns the most profit for the carrier. 😂 We care about what we can afford as consumers.
She is just saying random things and at the end told us what she really wants.. for us to subscribe
Reported for misinformation 😊
Cute model!
DELTA is # 1 !!!!!!!
That woman is stunning
If there's a screaming child on board everyone should get a refund or upgrade at the cost of the parent.
Yapping😂😂
what is blud waffling about
Plenty of government subsidies though 🎉
You’ve explained nothing…
Boohoo. The multibillion dollar company isn’t making money from ripping you.
thsi video is worse than my essay