Originally Posted by
chrisreedrules
Lol. Kind of reminds me of Doug Parker. “I don't think we're ever going to lose money again,” Parker said. “We have an industry that's going to be profitable in good and bad times.”
He might have actually been correct, for some number of decades, if not for covid. He was talking about economic cycles.
The nature of the airline business (exceptionally high fixed costs) means that you cannot practically operate with an economic model which would be resilient in the face of the largest of black swans (ex covid). But managers need to recognize that swans do happen, and need to be prepared to adapt to at least medium-sized ones.