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Houses in Disorder

Some Problems Faced by U.S. Air Carriers Are as Old as Stage Coaches and Steamships

Why is the airline industry so bad financially? That's an age-old question, posed anew by Middle Seat readers after last week's look at the current financial crisis facing carriers.

The short answer is that no one in history has ever made money by moving people -- not stage-coach lines, railroads, steamships or airlines. There's a high cost of capital and no way to inventory excess product -- empty seats spoil when the door closes. The current airline situation, of course, is more complicated. And Middle Seat readers asked...