What’s Wrong with European Airlines?
Last 150 days: 3 Airlines went bust
I believe the weaker and inefficient players are crumbling under the fierce competition and constantly evolving business models of low-cost airlines.
More airlines might go bust or consolidate in the near future.
It’s the similar pattern that the US airline industry had gone through.
Today, top 4 airlines cover almost 80% of the US domestic market share.
There are just 10 major airlines in the US now, down from 18 a decade ago.
Europe also has 5 large airlines (Ryanair, Lufthansa Group, International Airlines Group, Air France-KLM, and Easyjet). However, the industry is still too fragmented.
There are many small and mid-sized airlines carrying passengers in mere millions.
These are the airlines that will keep going bust or will be absorbed by the larger players in the coming days.
What are your thoughts?