Originally Posted by FlyingNasaForm

Here is my theory:

The airline industry as we know (deregulated) is very young, just 32 years old. There are quite a few airlines out there, and lots of seats to be sold. This competition is driving ticket prices down, and causing most airlines to be unprofitable.

In another 10-20 years the airline industry will mature and the competition will decrease as airlines go under or merge. This will reduce the number of seats in the market and raise ticket prices to a level that will allow the industry to be profitable.

If oil prices rise I think it could speed the process up. I don't think airline wages will ever be what they used to be. There are too many pilots and too few jobs.

Just my semi self-educated theory.