Why So Many Airlines are Going Bankrupt

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  • Published: 08 October 2019
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    Animation by Josh Sherrington
    Sound by Graham Haerther (http://www.Haerther.net)
    Thumbnail by Simon Buckmaster

    Music by http://epidemicsound.com
    Select footage courtesy the AP Archive

    References:
    [1] https://www.airlines.iata.org/news/iata-forecasts-355bn-net-profit-for-airlines-in-2019
    [2] https://blog.aci.aero/airport-markets-and-seasonal-variations/
    [3] https://www.macrotrends.net/stocks/charts/RYAAY/ryanair-holdings/gross-profit
    [4] https://voxeu.org/article/eu-s-insolvency-reform
    [5] https://www.ft.com/content/15ecdab8-c960-11e9-a1f4-3669401ba76f
    [6] https://www.ft.com/content/986c4e6e-db81-11e9-8f9b-77216ebe1f17
    [7] https://twitter.com/tcairlinesuk?lang=en
    [8] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [9] https://web.archive.org/web/20190514055927/https://en.wikipedia.org/wiki/Palma_de_Mallorca_Airport#Airlines_and_destinations
    [10] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [11] https://www.seatguru.com/airlines/Malaysia_Airlines/Malaysia_Airlines_Airbus_A380_new.php; https://www.flightradar24.com/data/aircraft/9m-mnf

Comments • 3 829

  • Smiley TV
    Smiley TV  5 minutes back

    Thomas Cokks history was 150 years not 50

    • B737FLY
      B737FLY  9 minutes back

      As far as Cook is concerned... I feel you missed a big reason for their downfall. Huge overhead. Whereas most airlines moved to the online environment for ticket sales, Cook had a shitload of brick and mortar locations and agencies. Dinosaur style....

      • Jesus Gonzalez
        Jesus Gonzalez  11 minutes back

        You failed to mention Germania, a leisure carrier which failed in February, not autumn...

        • Remo Kiltol
          Remo Kiltol  20 minutes back

          Cough cough, jet airways, Air India, Kingfisher airlines, all from India.

          • Azraai Azuha
            Azraai Azuha  21 minutes back

            Fellow proud Malaysians, where you at?! 🇲🇾

            • Flash 🇿🇦
              Flash 🇿🇦  37 minutes back

              I actually watched a Thomas Cook plane loaded and taking off on the 13 October 2019 at YVR Vancouver 🤔...
              (https://i.imgur.com/OfyvrZf.jpg) I heard about the bankruptcy in September, so I found it pretty odd. Maybe they've already re-leased the planes leased by Thomas Cook?

              • Apfelbaumuniversum 69
                Apfelbaumuniversum 69  2 hours back

                You even forgot Germania which went bankrupt in 2019

                • just1desi
                  just1desi  3 hours back

                  Are you on another channel? You’re voice is really familiar

                  • TNARG 1998
                    TNARG 1998  3 hours back

                    what font do you use?

                    • Karl Hans
                      Karl Hans  3 hours back

                      better no airplane flying because there destroy the earth by creating polution

                      • Mr. Cheesecake
                        Mr. Cheesecake  5 hours back

                        What's about Germania?

                        • Hxcgangster2011
                          Hxcgangster2011  6 hours back

                          I blame uber

                          • Dorian G
                            Dorian G  6 hours back

                            And then you have Croatia Airlines which has soo much debt, isn't profitable, and yet the government is giving tens of millions of taxpayers' €€€ to save it.😫

                            • Si4mon
                              Si4mon  6 hours back

                              Sam, I have already written you a DM on your instagram but I got no reaction.. I am looking for the references of the two other flight videos you made "How airlines price tickets" and "How budget airline works". I really need it for my studies, we have to do a seminar work and we are only allowed to use scientific literature. It would be a great help for me.

                              • Gregorio Lobato
                                Gregorio Lobato  6 hours back

                                Answer: Ronald Raegan

                                • Romeo
                                  Romeo  6 hours back

                                  We have other modes of transport in Europe, the competition is split between air, rail and road. That's why the seasonality is higher during the summer - more long distance demand.

                                  • Bhoom !
                                    Bhoom !  7 hours back

                                    You missed Jet Airways bankruptcy

                                    • Alpali
                                      Alpali  7 hours back

                                      It's the middle of October and I'll be damned if Norwegian Air survives the next two weeks.

                                      • The Q
                                        The Q  7 hours back

                                        Railroads be like:
                                        "I've been looking forward to this."

                                        • Jesus Gonzalez
                                          Jesus Gonzalez  10 minutes back

                                          Funny thing is: All those American business pax in aviation? Yeah, they're taking the train in Europe...

                                      • Forza223 Bowe
                                        Forza223 Bowe  7 hours back

                                        Airlines are not profitable businesses

                                        • Pranav Singanapalli
                                          Pranav Singanapalli  8 hours back

                                          looks at only european airlines that have gone bankrupt and says notice how all the airlines that went bust were European

                                          • Queerzie
                                            Queerzie  8 hours back

                                            It's heartbreaking when I think of all the brothers and sisters working for these airlines, I almost cried. So sad!!

                                            • Bob Kraft
                                              Bob Kraft  13 hours back

                                              They go bankrupt because of PISS POOR MANAGEMENT

                                              • Peter Widia
                                                Peter Widia  13 hours back

                                                In 8:43, did anyone else expect him to say "this business model is a rather new phenomenon made possible by *sponsor*" 🤣🤣

                                                • Ulysses Lee
                                                  Ulysses Lee  13 hours back

                                                  coz European Airlines almost rely on weather

                                                  • Zenochka Gaming
                                                    Zenochka Gaming  13 hours back

                                                    India has jet Airways too

                                                    • Amri Hakimi
                                                      Amri Hakimi  13 hours back

                                                      8:39, leaving this for future reference

                                                      • Shrey Bahuguna
                                                        Shrey Bahuguna  13 hours back

                                                        Jet airways went away as well. Would love it if you did a video about the aviation industry in India!

                                                        • Gary Hawkins
                                                          Gary Hawkins  14 hours back

                                                          Outrageous fuel prices and solid gold commodes in a certain part of the world

                                                          • James KNIGHT
                                                            James KNIGHT  15 hours back

                                                            P a s s e g e r s

                                                            • Niska Magnusson
                                                              Niska Magnusson  15 hours back

                                                              clearly they aren't extorting people enough for pre-boarding

                                                              • Noriel Sylvire
                                                                Noriel Sylvire  15 hours back

                                                                Winter is coming

                                                                • Jayashri Venketasubramanian

                                                                  This is one of my favourite videos of yours! Thanks for your amazing content :)

                                                                  • Exotic
                                                                    Exotic  16 hours back

                                                                    When UNITED goes bankrupt:






                                                                    *Yeetus Feetus*

                                                                    • Shady Brady
                                                                      Shady Brady  16 hours back

                                                                      In other words, American airlines don't have this problem because Americans run businesses, work, and actually have money to spend. Capitalism wins again.

                                                                      • Jesus Gonzalez
                                                                        Jesus Gonzalez  4 minutes back

                                                                        European business travelers by and large take the train.

                                                                    • BLx Droid
                                                                      BLx Droid  17 hours back

                                                                      Europe is bad for doing business is because of EU's unnecessary regulations.

                                                                      • Maarten van der Poel
                                                                        Maarten van der Poel  18 hours back

                                                                        Ryanair still going strong haha

                                                                        • Kartik Setia
                                                                          Kartik Setia  18 hours back

                                                                          Jet Airways also went bankrupt in India.

                                                                          • J W
                                                                            J W  20 hours back

                                                                            Cause they jacked their prices so high people stopped travelling

                                                                            • refresh fresh
                                                                              refresh fresh  20 hours back

                                                                              Jetstar just went bankrupt btw

                                                                              • Geo Jeff
                                                                                Geo Jeff  21 hours back

                                                                                Keep the governments out of airlines and investors won’t be so risky. To many government backed loans. Socialism always fails. Central banks always find there real value of $0.00.

                                                                                • esparda07
                                                                                  esparda07  21 hours back

                                                                                  10:00 That lady with the red luggage just wants to see the world burn.

                                                                                  • Bailey Hellmuth
                                                                                    Bailey Hellmuth  22 hours back

                                                                                    Qantas only survives & makes bank because it pays no tax & charges more to fly regional domestic than internationally.

                                                                                    • German Research Project
                                                                                      German Research Project  22 hours back

                                                                                      All other countries pick one airline, make it their national airline, and subsidize it. The USA subsidizes them all, federally, through serial bankruptcy. This costs taxpayers billions of dollars. Make them all go Chapter 9 instead of 11 and this will end. Another problem, business expenses as tax deductions. End this. We have teleconferencing via internet now. No need to fly, eat, party, and stay at a five star hotel for businessmen----especially when they write it off as a business expense and you end up paying for it.

                                                                                      • João David Fortuna
                                                                                        João David Fortuna  22 hours back

                                                                                        My hunch is Cook has investors but with Brexit in sight they prefer keep the debt in UK and creating a new one in Luxembourg ou Netherlands, maybe. Just like the division of Varig in rot and healthy enterprises, as seen also the GM case or the portuguese bank BES. Cook doesnt seem to fall as the others. Well, it's just a guess. Sorry my sorry english.

                                                                                        • Naser Alnuaimi
                                                                                          Naser Alnuaimi  23 hours back

                                                                                          A very well made video and interesting information, but you forgot to mention JetAirways which went bankrupt as well back in April 2019.

                                                                                          • Cuon Ly
                                                                                            Cuon Ly  24 hours back

                                                                                            So which airlines are going bankruptcy next? Qatar airways or Singapore airlines? you know better than I do why ?

                                                                                            • tray pendland
                                                                                              tray pendland  24 hours back

                                                                                              *cheap airlines, yet extremely limited for USA flyers*