Why Do Airlines Run On Such Wafer Thin Profit Margins?

Commercial aviation is an industry with notoriously low profit margins, a fact that has famously pushed many investors, such as Berkshire Hathaway's Warren Buffett, away from investing in airlines. As any economist or financial accountant will tell you, the profit margin represents the percentage difference between the profit a firm is able to generate and the costs incurred to create these earnings.

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