Air travel demand is breaking records. Airline profits are not.

This is a common scenario in the airline industry where despite high levels of passenger demand, airline profits are not as high. Reasons for this discrepancy could include:

1. High Operating Costs: Airlines have several fixed and variable costs. Fuel, maintenance, aircraft leasing or purchases, landing fees, labor costs—all can chip away at the profit margins.

2. Competition: The airline industry is highly competitive. To attract passengers, airlines can often involve in price wars leading to reduced ticket prices and hence lower profit