This Video Explains Why So Many Airlines Are Going Bankrupt

The last five years have seen some extremely high profile airlines collapse.

The last five years have seen some extremely high profile airlines collapse. In 2017, Monarch went belly up and so did Airberlin. 2018 saw the end of Primera Air. But 2019 was the year that really took the cake.

Wow Air, Aigle Azur, Adria, Thomas Cooke and XL Airways all stopped flying. And that is not all, these are just the most high profile ones.

Strangely, all these airlines stooped flying in October or September which is not a coincidence. There are very good reasons behind these trends.

For the timing, in general airlines most profitable seasons are summers. That is when there is more demand. It makes sense then that the airlines would go bottom up on a non-summer month.

Come September, bookings slow down and so does cash flow. But why are these bookings slowing down and what is making these airlines go bankrupt?

Wendover Productions explains this in a clear illustrative matter. We won't tell you the answer here. You have to watch the video for that. We will tell you it is an interesting phenomenon.

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