FlyerTalk Forums - View Single Post - Evaluating AC's performance and competitive offering in 2023-25
Old Jun 27, 2023 | 3:42 pm
  #64  
EdmFlyBoi
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Originally Posted by tracon
According to the grocery industry, their profits margins are 4%.

https://www.cbc.ca/news/business/gro...ysis-1.6774669


Depending on the economic cycle, that can be more or less than the aviation industry.
Other than fear and common sense, there is nothing stopping anyone from starting an airline or grocery store in this country.
If you read the entire article it doesn't say that the margin has remained the same. The article argues that the input costs have stopped rising and yet prices have continued to rise, which is likely why it is being looked at. Food is also a necessity. Airline travel is not. And I agree that the barriers to entry in the airline industry are significantly greater then opening a grocery store (despite the lack of assurance that the store you open may not be profitable).
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