In the airline industry, a huge portion of the cost comes from jet fuel (naptha or kerosene), which is derived from crude oil. Crude oil is a natural resource that is used widely, from energy production to making household products, and the price fluctuates base on demand and supply. If price of oil drops, good for them, if it shoots up then it's bad news. Since the cost vary widely and unpredictable, some avoid investing in this industry.
https://blog.seedly.sg/singapore-airlines-sgx-c...
Significant Capacity Cuts
Capacity here refers to the amount of planes available for operation. A huge capacity cut would mean lesser income since the company is not able to transport as many people to places with lesser planes used.
Price Competitive Industry
There are many price comparison websites to filter out the cheapest airline ticket. The airline have to set their price very low in order to attract customers and their income will be low. This is unlike the petroleum gas at home used for cooking. Even if there is a price increase, you will still buy it in order to cook.
Need for Modern Fleet
The airline needs to buy new planes (which cost a lot) to replace older ones. Type and age of plane is also a consideration for some when they choose to fly.
In the airline industry, a huge portion of the cost comes from jet fuel (naptha or kerosene), which is derived from crude oil. Crude oil is a natural resource that is used widely, from energy production to making household products, and the price fluctuates base on demand and supply. If price of oil drops, good for them, if it shoots up then it's bad news. Since the cost vary widely and unpredictable, some avoid investing in this industry.
https://blog.seedly.sg/singapore-airlines-sgx-c...
Significant Capacity Cuts
Capacity here refers to the amount of planes available for operation. A huge capacity cut would mean lesser income since the company is not able to transport as many people to places with lesser planes used.
Price Competitive Industry
There are many price comparison websites to filter out the cheapest airline ticket. The airline have to set their price very low in order to attract customers and their income will be low. This is unlike the petroleum gas at home used for cooking. Even if there is a price increase, you will still buy it in order to cook.
Need for Modern Fleet
The airline needs to buy new planes (which cost a lot) to replace older ones. Type and age of plane is also a consideration for some when they choose to fly.