Why So Many Airlines are Going Bankrupt

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  • Published: 08 October 2019
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    Animation by Josh Sherrington
    Sound by Graham Haerther (http://www.Haerther.net)
    Thumbnail by Simon Buckmaster

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    Select footage courtesy the AP Archive

    References:
    [1] https://www.airlines.iata.org/news/iata-forecasts-355bn-net-profit-for-airlines-in-2019
    [2] https://blog.aci.aero/airport-markets-and-seasonal-variations/
    [3] https://www.macrotrends.net/stocks/charts/RYAAY/ryanair-holdings/gross-profit
    [4] https://voxeu.org/article/eu-s-insolvency-reform
    [5] https://www.ft.com/content/15ecdab8-c960-11e9-a1f4-3669401ba76f
    [6] https://www.ft.com/content/986c4e6e-db81-11e9-8f9b-77216ebe1f17
    [7] https://twitter.com/tcairlinesuk?lang=en
    [8] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [9] https://web.archive.org/web/20190514055927/https://en.wikipedia.org/wiki/Palma_de_Mallorca_Airport#Airlines_and_destinations
    [10] https://thepointsguy.co.uk/news/on-thomas-cook-repatriation-flight/
    [11] https://www.seatguru.com/airlines/Malaysia_Airlines/Malaysia_Airlines_Airbus_A380_new.php; https://www.flightradar24.com/data/aircraft/9m-mnf

Comments • 3 993

  • Kyle Darwin Enriquez
    Kyle Darwin Enriquez  1 hours back

    It thinks there is going to be a disruption in the aviation industry yin the coming decade when battery density doubles.

    • namme hauusw
      namme hauusw  4 hours back

      8:43 "This business model is a rather new phenomenon, made possible by squarespace"

      • Anonoz Chong
        Anonoz Chong  6 hours back

        AirAsia X a financial success? No LOL.

        • Lava Yuki
          Lava Yuki  8 hours back

          I never thought Thomas Cook would go bankrupt since it seemed so popular

          • Daniel Eyre
            Daniel Eyre  9 hours back

            And this despite the generous subsidies.

            • Chris Taylor
              Chris Taylor  18 hours back

              uhhhhh..... 5:50 ? Someone has had a substantial accident....

              • Lilitha11
                Lilitha11  19 hours back

                Seems like they knew ahead of time they were going to collapse, so not saying anything til the last minute and stopping flights when people already boarded them seems like a dick move. I am sure they could of canceled a lot of flights further out, and then sold off planes and stuff to fund operations for the more near term flights, to have a more controlled collapse.

                • Ban
                  Ban  20 hours back

                  It bothers me you spent a significant portion of this video making a socialist pitch, wherein you completely acknowledge the benefits of the government funded flights and dont even have the objectivity to mention whether the dollars spent on those flights are worth it.

                  • Craig Lawson
                    Craig Lawson  20 hours back

                    Not raising the prices by 200% in summer would help them get more bookings instead if trying to rip off hard working people

                    • Spring4030 Zxqa6519
                      Spring4030 Zxqa6519  21 hours back

                      If your completion went out of business, wouldn't that get you more customers and you can then increase prices.

                      • Spring4030 Zxqa6519
                        Spring4030 Zxqa6519  21 hours back

                        If your completion went out of business, wouldn't that get you more customers and you can then increase prices.

                        • Nick P. Wilde
                          Nick P. Wilde  1 days back

                          2:40 The Airline Passengers Per Month graph is deceptive. It starts at 90 instated of 0.

                          • Biko from the Lowlands

                            Same thing as with car brands right? I’m going to watch the video now, let’s see

                            • Solid_Snake
                              Solid_Snake  1 days back

                              Also Alitalia is going bankrupt🇮🇹

                              • Mike Imbesi
                                Mike Imbesi  2 days back

                                If you think that's a bad business model, you should see shipping. Constant overcapacity. There's also typically a 7 year cycle where 5 or 6 years are unprofitable and only 1 or 2 years are profitable.

                                • Brandon Lee
                                  Brandon Lee  2 days back

                                  You have a lot of airlines in europe.

                                  • TheFlyingCoconut 07
                                    TheFlyingCoconut 07  2 days back

                                    7:59 That’s 300 Toyota Corollas!

                                    • bagariddum
                                      bagariddum  2 days back

                                      8:08 thomas cook cost the uk TAX PAYER a shit tonne of money NOT the bloody govt ! meanwhile the 'execs' robbed the company of 50 MILLION pounds. JAIL TIME required for those scum.

                                      • bagariddum
                                        bagariddum  2 days back

                                        Thomas Cook "executives" (AKA: criminals) looted 50 MILLION POUNDS from the company in the lead up to its collapse. They called the stolen funds: "bonuses"...how quaint.

                                        • Bruno Lapinski
                                          Bruno Lapinski  2 days back

                                          It's good these companies are going bankrupt because less planes means less CO2, so its better for the environment.

                                          • FST Study
                                            FST Study  2 days back

                                            OK this is a little off topic comment here.






                                            But I think new YouTubers (like myself) should learn the art of making thumbnails from you.

                                            • Laurens Rodi
                                              Laurens Rodi  2 days back

                                              how big of a factor is (expensive) unionized air and ground personnel in Europe on the struggling finances of these (former) companies ?

                                              • Levy Roth
                                                Levy Roth  2 days back

                                                No one can afford to travel anywhere anymore because we're all getting poorer, not richer. Duh!

                                                • Diogo F
                                                  Diogo F  3 days back

                                                  Wendover should do some videos not about planes

                                                  • Jahn Kaplank
                                                    Jahn Kaplank  3 days back

                                                    so the problem is not the airlines but the debtors. Why don't they structure the pay-back of debt to coincide with high profit months? (pay more when the cash flow is good, and pay near NOTHING during the hard months).


                                                    it is common knowledge that, since their inception, BANKS have been nothing but trouble. They leave you alone as long as you're making them money, but the MINUTE you don't pay, they STEAL your wealth through foreclosures. Fight the banks, not the operators.

                                                    • Abdul Hakim
                                                      Abdul Hakim  3 days back

                                                      Salam from Kokdiang, Malaysia.

                                                      • Whyareall
                                                        Whyareall  3 days back

                                                        "everything is ready to go, everyone knows what to do and how to do it, but the flight can't go because everything is owned by some old white dudes in suits thousands of miles away and they say no" is a big reason capitalism is such bullshit

                                                        • vengefulenigma
                                                          vengefulenigma  3 days back

                                                          Adria airways has had problems for years now, but only went bankrupt like 2 weeks ago. It wasn't that big of an airline, but it was the only Slovenian airline.

                                                          • Henry Phillips
                                                            Henry Phillips  3 days back

                                                            I used to LOVE flying when I was a child then I started to hate it for all the obvious reasons: Long queues, ears pop, crying children ect ect. But then I stopped flying Thomas Cook and everything changed, I LOVE Flying again. No coincidence.

                                                            • Certified Dead Memes
                                                              Certified Dead Memes  3 days back

                                                              Wendover productions is secretly a 737

                                                              • Dugroz Reports
                                                                Dugroz Reports  4 days back

                                                                Chipriot? With an "h"? Is that right?

                                                                • Baran Orak
                                                                  Baran Orak  4 days back

                                                                  That loser from HalfAsInteresting just called you plain and lame! >:

                                                                  • Charlie
                                                                    Charlie  4 days back

                                                                    There's like a minute missing that I cannot remember and in that time I ended up at this video


                                                                    a demon did it,,,

                                                                    • Southern Arawak
                                                                      Southern Arawak  4 days back

                                                                      We are seeing the end of European coercion and colonialism. All European nations and their main colonies (USA, Australia, etc) are hurting badly and I strongly doubt here will be a recovery from the next recession-depression.

                                                                      • Alex
                                                                        Alex  4 days back

                                                                        Nobody:
                                                                        Wendover: Airlines

                                                                        • kirtikumar sonawane
                                                                          kirtikumar sonawane  4 days back

                                                                          Jet airways?

                                                                          • Tim Keachie
                                                                            Tim Keachie  4 days back

                                                                            the big shits are buying them up its to keep us in our owe country and keep there plane up to chemtriling our skys

                                                                            • Subodh Karwa
                                                                              Subodh Karwa  4 days back

                                                                              You missed Jet Airways which went bankrupt in 2019. Its was a Star Alliance Partner operating out of India.

                                                                              • Juan José Peñaranda
                                                                                Juan José Peñaranda  4 days back

                                                                                Let me correct your title: Why so many *_European_* airlines are going bankrupt

                                                                                • Hakunetsu YT
                                                                                  Hakunetsu YT  5 days back

                                                                                  MAS yet again with their generousity, XD been quite generous since their establishment

                                                                                  • Lella Pelaou
                                                                                    Lella Pelaou  5 days back

                                                                                    I take issue with how you said "Cypriot"

                                                                                    • ReconMANCER
                                                                                      ReconMANCER  5 days back

                                                                                      because of Mr. Garrison´s "It"

                                                                                      • Abhishek Srivastava
                                                                                        Abhishek Srivastava  5 days back

                                                                                        In India well respected airline Jet Airways also collapsed. In its hey day the market evaluation of jet airways was close to American Airlines.

                                                                                        • David Frankal
                                                                                          David Frankal  5 days back

                                                                                          Should also mention UK airlines are particularly vulnerable atm due to Brexit-related uncertainty - this certainly contributed to the demise of Thomas Cook

                                                                                          • Konnos Vatamidis
                                                                                            Konnos Vatamidis  5 days back

                                                                                            1:03
                                                                                            Cobalt Air: a small CHEAPriot carrier LMAO

                                                                                          • Pankaj naik
                                                                                            Pankaj naik  5 days back

                                                                                            Why not news about india...ther passager increase bt airlines sink.

                                                                                            • Mr. Popo
                                                                                              Mr. Popo  5 days back

                                                                                              It's because of the EU (European Union) not other factors.

                                                                                              • DivineAlign8
                                                                                                DivineAlign8  5 days back

                                                                                                Somehow i came across your series and even though I originally wasn’t into the fine print of aviation the way you explain everything is addictive and easy to follow. Great docuseries