Airlines Try to Learn From Past

A perfect mix of high demand for seats combined with low supply has transformed the once gloomy airline industry, where it now seems that nothing can possibly go wrong.

But can it? Throughout their history, airlines have failed to capitalize on such opportunities. Since the Wright Brothers' first flight in 1903, U.S. commercial airlines have posted a net loss of about $17 billion, according to the Air Transport Association. From 2001 through 2005, the industry lost $35 billion.

This year should mark a turnaround, with the ATA forecasting a net profit, excluding one-time charges, of at least $1 billion. But if the past is a guide, the future remains in doubt. ...