Why airlines get bankrupt?

Airlines can go bankrupt for a variety of reasons, including:

1. High operational costs: Airlines require a significant amount of capital to operate, including costs associated with aircraft acquisition, fuel, maintenance, and labor. If an airline is unable to control these costs, it may struggle to remain profitable.

2. Economic conditions: Airlines are sensitive to changes in the economy, including recessions and changes in consumer spending. When economic conditions worsen, people may be less likely to travel, leading to a decrease in demand for airline services and a corresponding decrease in revenue.

3. Competition: The airline industry is highly competitive, and airlines must compete on price, route networks, and customer service. If an airline is unable to differentiate itself from its competitors or is unable to offer competitive prices, it may struggle to attract customers.

4. External events: External events such as natural disasters, political instability, and terrorist attacks can significantly impact the airline industry. For example, the COVID-19 pandemic led to a significant decrease in air travel demand, causing many airlines to struggle financially.

5. Poor management: Poor management decisions such as overexpansion, excessive debt, or poor financial planning can also lead to an airline's bankruptcy.

Ultimately, an airline's bankruptcy is usually the result of a combination of these factors, rather than a single cause.