How Airlines Make Money — Where Your $7 Ticket Actually Goes

You'll see why an empty seat is the most perishable product in business, how a six-seat cushion can separate a profitable flight from a losing one, and how revenue management charges two people very different prices for the same seat. We cover premium cabins, bag fees and other add-on revenue, and the frequent flyer and credit card deals that can bring in more cash than flying itself. We also look at the costs that eat the margin, including labor, fuel, hedging, landing fees, and maintenance, plus real examples of what goes wrong, from Pan Am's collapse to Spirit Airlines' repeated bankruptcies and the shock of 2020. Finally, we run the numbers on what a typical airline and a top-performing airline can realistically earn. Dollar figures for a sample flight are illustrative estimates, and some industry figures are approximate. This video is for education and is not financial advice. #AirlineBusiness #HowAirlinesMakeMoney #BusinessDocumentary