Throw in cyclical and season demand, high capital or (aircraft) leasing expenses, and low variable costs with cutthroat competition, and it is no wonder that airlines lose more money than they make.
The industry is working hard to raise prices. And so far they have been successful. (But) we have not figured out where higher fares begin to cut demand.
The only way these guys can escape higher fuel prices is by raising fares. The industry is working hard to raise prices. And so far they have been successful.