Why the Economics of the Airline Industry are Hopeless

American Airlines (NYSE:AMR) filed for Chapter 11 bankruptcy Nov. 28, and the move reinforced once again what many have learned the hard way: The airline industry is an incredibly disappointing investment. Previous airline flops like this prompted an old saying - possibly untrue - remarking that the airline industry has lost money since the Wright Brothers first flew. They've also inspired tall tales of time-traveling bankers from the future having been seen at Kitty Hawk on Dec.

The airline industry