US Airways Group - At the Back of the Pack

After the stock market crash of 2008 and the economic recession that followed coupled with rising fuel costs were the direct cause of several airlines having to file for bankruptcy protection (Plunkett Research, 2010). The airline companies that survived the onslaught were presented with a volatile and fluctuating operating environment of rising fuel and energy costs, coupled with a decreased demand for passenger travel in general and negative impact on revenues mainly as a direct result of the economic downturn. The rising costs have cut the margins in the industry so much that current the average net margin in the airline industry is two percent.