Airlines Struggling to Generate Profit

Filed Under (Uncategorized) by todaysbu on 21-06-2012

Major airlines are struggling to generate profit due to increasing competition and a rise in fuel bills. Low cost airlines have been earning revenue from the start by pushing sales on the smallest of souvenirs and now many well established names are being forced to do the same. Encouraging the trade of lunch deals, to teddy bears; baggage charges to on board competitions are just a few services that are being put into place.

Passengers are set to notice a rise in costs as discussions take place regarding small ways in which to earn more profit to cover the cost of running the airlines. Telecommunications for example has been notified as a prime source to generate money and therefore there is an increase in expectancy for wireless and internet-related services to be charged on board.

Companies will be looking into common requirements for passengers and the benefits they will retain if a charge is put onto these presently free customs. These changes are likely to prove extremely difficult for traditional airlines however with rivals having already established this money making scheme whilst offering no frills flights.

Budget airlines have become increasingly popular and easier to obtain through travel compare sites. Airlines who offer luxury and better travel experiences clearly target a specific market area and the question is can they afford to reduce certain aspects of a luxury service without losing valuable customers?

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