Holy crap, I'm listening to an airline pilot - who _repeatedly_ claims to be "not very smart" - provide me with a very logical, cogent, and understandable explanation of the macroeconomics of the passenger airline and credit card industries.

@Jernaumg

2 күн бұрын

Sorry to be the internet pedant but this is microeconomics as it's related to individual entities or markets. 👍though on the rest :).

@leafboye33

2 күн бұрын

​@@Jernaumgyou just couldn't stop yourself huh

@151balance

2 күн бұрын

Amazing feedback ya’ll. How’d you do that tiny text?

@AC-ih7jc

2 күн бұрын

@@Jernaumg I can be a pedant at times, too. Economics was never my strongest subject. No worries.

@AC-ih7jc

2 күн бұрын

@@151balance By "tiny" do you mean like _this_ ?

reminds me of the old joke, "we lose a dollar on every sale, but we make up for it in volume."

@leafboye33

2 күн бұрын

And sometimes an empty warehouse is worth more than the product in that warehouse and sometimes you gotta lose that dollar to get the warehouse cleaned out

@kenbrown2808

Күн бұрын

@leafboye33 well, if you have inventory that isn't selling, then yes, losing 10% on it is better than losing 100% on it. But restocking it would be stupid.

@kurtkensson2059

Күн бұрын

"A quick nickel beats a slow dime" was a better retail slogan!

@bobwilson758

Күн бұрын

Right . ? WTF ? 😢😮😅

@bobwilson758

Күн бұрын

@@leafboye33huh ? Get some rest -

kelsey’s lack of intellectual arrogance and being strictly concerned with making sure the facts are right is so refreshing given how the internet is these days

I bought a car a couple of months ago when I learned that the dealership wasn't selling cars, they were selling financing. My paying cash for a vehicle made me persona non-grata. as they could sell the same car to someone who would also buy financing. Yup - we live in that world. Kelsey - check out "equity funds" next. Another horror story for all of us.

@donaldreimer2390

Күн бұрын

you are 100 percent correct well put

@c1d2e

Күн бұрын

Very true, you can always finance (Make sure no penalty for early payoff) then pay it off the next day or even later the same day at the finance desk, they love that HAHA!

@KB-ql8cx

Күн бұрын

That’s not a thing. Must have been the dealership you went to because I’ve never had an issue doing that.

@tomr3422

Күн бұрын

Its been that way for a long time, I always pay cash for a car, I worked for GM many years ago and even there they were more worried about the financing options the the car options.

@stripey1960

Күн бұрын

I was in a garage last week in the UK and a guy was trying to pay cash for a car. The salesman said he could offer a better price if he would pay even a little if it on finance. It seemed all backwards to me, as I come from an era where ‘Cash was King’. Now it seems everyone wants yo7 to get into some sort if debt as they can make money from it. How can economics really work in favour if the average person if that continues. The only people that benefit are the executives and major shareholders if corporations that profit from other people’s misery. Having said that, we are guilty of living beyond our means, and who encourages that? Big corporations and governments!

30 seconds in and Kelsey's already roasting people. Love it.

@ivanivanovich5904

2 күн бұрын

why?

@Midnight.Rain.747.

2 күн бұрын

yuh

@youssef16844

2 күн бұрын

I see he roasted the top of your head years ago.

@comicus01

2 күн бұрын

Clearly he didn't get any snacks today, lol (but it's honestly a quality video from him)

@og_23yg54

2 күн бұрын

Wired

Airlines are basically banks these days with their frequent flyer mile programs.

@Willbrse

2 күн бұрын

Yeah, there is a video on this from 2 or 3 years ago. It's very interesting

@196cupcake

Күн бұрын

@@Willbrse Yes, Wendover Productions, "How Airlines Quietly Became Banks". They're really more like a central bank than what you normally consider a consumer bank, since miles programs are a lot like printing your own currency. Airlines are banks with a side business in air transportation. I'd probably pay an $80 premium to not fly Spirit Airlines.

@-Thunder

Күн бұрын

GM used this model. Basically sold the cars at cost and made all the profit on the loan interest. Also, the biggest airlines are considered critical defense infrastructure so they'll always find magic money from "somewhere, somehow". A few of the biggest banks are also critical infrastructure and will be bailed out. Hmm....

@ef2b

Күн бұрын

I'm not sure Kelsey has this quite right. I recall an analysis a few years ago that showed how it isn't really the credit cards. It is the loyalty points themselves. Those points have economic value, are traded, and generate revenue. This analysis concluded that the loyalty points are really a shadow currency that is difficult or impossible to value, which (as a result?) ducks tax liabilities, and which is the main source of airline revenue. I cannot remember if it was suggested that fares are kept low to minimize tax burdens.

@oyajiblues

Күн бұрын

@@ef2bnot exactly buy for a dollar sell for two

I’m looking forward to the day we get blessed with “Kelsey Airlines”

@myt763

Күн бұрын

nice to find you on here since you’re one of the best remaining creators on youtube too but i’m just planning for a transatlantic trip and was shocked seeing prices on a ticket go up by $600. Calling the agency today to haggle because that’s bullshit.

@eekee6034

Күн бұрын

In this economic climate, I wouldn't want to wish that on him; I'd rather be a janitor! XD Or do you mean after the inevitable collapse of civilisation, when Kelsey gets together with Peter Sripol to build and run the first post-apocalyptic airplanes? Oh wait, maybe not Peter Sripol, he does crazy stuff like making a cardboard electric boat, though he can make just-about anything fly! lol

@TacGrave

Күн бұрын

Well said

@coachwalrus3158

Күн бұрын

😂😂

@jonslg240

Күн бұрын

It would hopefully be full of 747s, A380s, and (my favorite) A320s. And also do nonstop from BOS(ton) to LA(x) for $68 each way during summer season, and equal or less year-round. He should brand it KELJet. "We take the heavy loads, like your ex-wife, so you don't have to." 😉

This has been the norm for airlines for 60 years. Operating on a shoestring, accepting unsustainable wage and benefit proposals. A dozen bankrupted. Another dozen forced to merge.

3:03 The dreadfull media offline screen is my worst fear when I edit video for youtube

@Jablicek

2 күн бұрын

Someone was on a deadline.

@bugostare

2 күн бұрын

[comment redacted]

@ntfriar

Күн бұрын

Premiere tried really hard to warn you when that happens though

@AWAShowme

Күн бұрын

Yeah, that's rough. Though most users won't notice what it is, only a select few.

@tenshunn

Күн бұрын

Gave me anxiety. Lol

People, people, never take out a loan for a trip. You don't have the green, your ass should stay home.

@jimshoe402

2 күн бұрын

Gee I did that at 8 years old !!!!!!!!!!!!!!!!!!!!

@KB-ql8cx

Күн бұрын

Exactly, which is why we haven’t flown for a vacation for years. I’m not putting anything long term on my credit card.

@bjornsan

Күн бұрын

I always say that if you can't afford it you shouldn't buy it. I've never taken a loan in my life but I don't need a fancy house or a brand new car.

@baseballmomof8

Күн бұрын

Correct

@RubenThomas

Күн бұрын

Rich people ask, "How much is this?" Poor people ask, "How much is this per month?"

My most recent trip on Alaska Airlines, the flight attendants were pushing the card and said even if you had the card already, it’s ok to apply for a second one. 😂

@rf159a

2 күн бұрын

Home Depot did this to me. They were okay if I had a second Home Depot Credit card!!

@Dirk-van-den-Berg

Күн бұрын

European airlines don't do this. Even on discounters, there is no creditcardissue.

@schalitz1

Күн бұрын

That's absolutely insane! I get left alone once I tell them I have it.

@njcanuck

Күн бұрын

The staff want to keep their jobs.

@adriaba790

Күн бұрын

😮🙈🙈

The tiny fares are reflected in the number of unsavory butts in the seats. There will be much less of the current antics when the fares are sufficiently increased.

“I jumped in the old Google machine “🤣🤣🤣🤣🤣🤣🤣

@d_kortman

2 күн бұрын

Ol’ Dr. Google

@davidcole333

Күн бұрын

Think what he could do if he would ditch Google and turn to AI.

@frkieran

Күн бұрын

@@davidcole333nothing?

@richardvoogd705

Күн бұрын

​@davidcole333 the AI that incorrectly claimed that there is a new road tunnel near where I live when I was asking about a nearby railway tunnel that was decommissioned in 1900? There is a fairly new road bypass but it doesn't go through a tunnel.

@Orcinus1967

Күн бұрын

I think he means the interweb.

Your expertise goes way beyond flying an airplane. Great tutorial on the economics of commercial aviation. Thanks.

@jormalonnberg1578

2 күн бұрын

Maybe its not "expertise" beyond flying, but kind of interest for where my salary comes from and is it stable in future? On those points of thoughts I would dig little bit deeper, is my workplace secure or not, And what to do, to secure my position. (and if not, what else I can do for my living).

@comicus01

2 күн бұрын

@@jormalonnberg1578 The airline industry is notoriously unstable. Lots of booms and busts. Especially so in the US since price deregulation 45 years ago. It behooves anyone with a job to look into the business (and wider industry) they work for and get a look at their overall health.

@senseisecurityschool9337

Күн бұрын

​@@jormalonnberg1578 And the ability to think clearly, then put those clear thoughts into words. I don't think Kelsey has any expertise about the facts of airline balance sheets, but rather a common-sense way of looking at "okay, they made $3 billion total. They made $5 billion from credit cards. Therefore all their profit is from cards." It's an ability to think things through, rather than expertise on a particular topic. People have told me it seems like I know about just about every discipline, every topic. Economics, chemistry, whatever. I don't, of course! I just realize that 5 - 3 = 2 in every context. $5 billion - $3 billion = $2 billion; 5 molecules - 3 molecules = 2 molecules; 5 meters of pipe - 3 meters = 2 meters of pipe. It's not that I know plumbing and chemistry and airline economists, I just know that 5 - 3 = 2, all the time. :)

Not making up to a million before retirement is unfulfilled retirement.!! I’m 54 and my wife 50 we are both retired with over $7 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock and forex market made it possible for us this early, even till now we earn weekly.

@Enidmcgarvey2232

Күн бұрын

Investment should on every wise individuals bucket list. You will be ecstatic of the decision you made today.

@landernaallman1264

Күн бұрын

I got my first house the year I started investing and today networth is over £732k

@landernaallman1264

Күн бұрын

so perfect

@WhitneyElwood

Күн бұрын

I’m a young mom, I’m really glad to hear your story it inspires me. can you share how you earn weekly.

@Enidmcgarvey2232

Күн бұрын

Credits to Dylan Kyle Zachary, He saw me through the process.

$137 from BOS-LAX is 100% possible - I'm based in Boston, and professionally managing travel is one of my responsibilities. I book flights for the CEO, his direct reports, my team and myself and it's low key the best transferable skill from my current job. I can get to Chicago for less than a grocery run at the Medford Wegmans, I could get to Europe for less than a steak dinner at a mom & pop restaurant. It is easily cheaper to fly somewhere than it is to buy groceries, and I've been wondering how on Earth that's been possible for years.

I look forward to Kelsey Sundays. Thank you, Captain.

@ElementalRadiation

2 күн бұрын

thats not what the unemployment rate measures...

@adriaba790

Күн бұрын

Yep. And we surely miss you on your"off" Sundays !😄

My neighbor that's a United pilot, always says that airlines loose money on passengers but make it up by flying cargo.

@gtm624

2 күн бұрын

Yup. My thought was that the planes passenger compartment might shrink and they capitalize on more cargo per flight than passengers.

@stevenr8606

2 күн бұрын

I unfortunately flew to Tokyo business class (round trip), and they denied me air mileage. AND, told me to prove it. 🤔 OK, here's my 'certified ' passport copy as well as my flight ticket 😛 United wasn't counting on me to contest their request with proof.😳

@garyb6219

2 күн бұрын

Lose!

@empireoflizards

2 күн бұрын

I think Kelsey (or maybe Mentour Pilot?) mentioned this in an older video. But, it depends on the airline and other economic factors.

@TankR

Күн бұрын

@@empireoflizards We should all keep in mind Kelsey didnt tell the whole story with those numbers he highlighted. Of the 52 billion something American made, 90% was direct operating expenses, and there are more liabilities further down the document. Compared just to their 14 billion and some change salary and benefits liabilities (ya know, payroll), their net income (remember more is still coming out further down the document), $822M, with an m, is 17% of what they pay out in payroll, wages, and benefits alone. That number at the very bottom, 822 million....that is just 1.55% of that 52 billion gross income. Yes, its a lot of money to us plebeians. But they are a multinational airline company. They are shoveling stupid amounts of money thought the economy, and make 1.55% of what they bring in. Compare that to your salary. Now imagine someone came up to you and said "well you made [whatever] thousand dollars last year, you can afford to give a bunch of it away! Greedy fat cat!!!" I personally would not blame you for bopping them in the nose then throwing your starbucks cup at them. In fact, I saw the whole thing officer, that person fell onto that other persons cup and hit their nose on the curb. Business finance is a whole other game of numbers, yo. And thats not any one person's money. Its a publicly traded company. The cash on hand line (the actual money in the account they have that belongs to the corporation), and all its assets (anything it doesnt rent including uniforms, desks, chairs, computer monitors, the door on the executive conference room) are divided up between and belong to the investors. Often CEOs only have a token salary of $1, the rest is in preference stocks (which are as legally binding to pay out as the power bill or mortgage). ie, if the company does good, so do they. If not....they take it personally because its literally their take home that is impacted. Now, all of that is not to say credit card schemes arent scummy. IMHO, they're all scummy. I stay away from all credit card usage personally. If i dont have the money, I dont get it, because I dont have the money. plane and simple. Im just saying take a business accounting course some time. Its really easy, the spread sheets do the work for you, and trust me, they are freaking awesome. Seriously. Its not hard. Let go of the trauma left over from high school homework. And if you're an actually nerdy type...its kinda fun! And more to the point, the big numbers on financial statements only tell a tiny sliver of the whole story. Dont fall victim to the tunnel vision Kelsey expressed here......The bits he highlighted are mainly what they put through the economy spread out through everywhere they serviced.....imagine 52 billion dollars stopped moving through the economy.....if that doesnt tighten your balloon knot, Im afraid you might not understand how national economies work...... For clarity: any use of the word "you" is a colloquial third party removed from of "you" aimed more at the reader and not necessarily aimed at the commenter this post is in reply to.

@3:45 “just had to pay for that trip to that exotic destination for that girl you met on Onlyfans…” yep, Kelsey definitely speaking from experience here. 😂

@eric67361

Күн бұрын

doesn't he have non-rev privileges he can share? 🤣

@toddsmith8608

13 сағат бұрын

He "had a friend" this happened to.

If I don't get that credit card and use it, it's my fault the airline goes bust. What a quandary. Some people invest in mutual funds; I invest in firewood for my house in the middle of nowhere.

@kerrryschultz2904

6 сағат бұрын

Smart man. Hope you also try to grow your own food?

@Trassik

6 сағат бұрын

@@kerrryschultz2904 it's middle of nowhere cause can freeze any night of the year. So it's challenging to garden. There are ways around. We have grow tower in basement. And plans for underground greenhouse.

Good point. But CEOs especially in USA don't care about long term. They give record payout to their investors, and move on to the next better paying job, leaving the company and its loyal staff to swivel.

@dannydaw59

Күн бұрын

They do stock buybacks to juice the stock price without adding any real value to the company.

@Sonny_McMacsson

Күн бұрын

@@dannydaw59 We're entering the post-innovation and post-value era of the economy where companies just become parasitic rent seekers.

@pamanderson4690

Күн бұрын

That's what caused the global financial crisis. Approving loans for people who couldn't afford them. Of course the lender got his fee and commission they they move on to a new bank. The bank had a term for these desperate borrowers. NINJA. it stands for no income ,no job no assets! But the home lender wanted his commission it didn't bother him what would happen to the desperate families when they defaulted 😢

@JoeGator23

Күн бұрын

@@dannydaw59 It used to be illegal until corporations lobbied and changed the laws for stock buy-backs. In the end, it's the taxpayers and customers that get the bill and lose. The CEO's skate away with $ Millions, plus bonuses. No more bailouts, ever!

@richardnixon8795

Күн бұрын

What's stopping the loyal staff from investing in the company? Then they will get part of these record payouts to investors.

Once again Kelsey keeps me "grounded" no pun intended, in aviation facts! Thank you, Captain!

You're a natural, keep doing what you do

I just booked a European business ticket on a 4 hour flight and was told, no meal supplied (threshold is now 4.5 hours). It's double the cost of the economy seat, but that curtain they draw across the cabin will make ALL the difference to my flight comfort! Yea airlines, cry me a river.

@SilentdragonDe

Күн бұрын

What airline? So I can avoid ever accidentally booking them.

@toddsmith8608

14 сағат бұрын

It's not the curtain or the meal, it's the bigger seat that actually reclines and ample legroom that make the difference. I'm 5'10" 175lbs and barely fit in economy. Sometimes it's worth it to pay extra, especially on a long flight.

10 сағат бұрын

​@@toddsmith8608In European Business class, you get the exact same seat as in economy, just with the middle seat blocked

@jbranche8024

9 сағат бұрын

Bangkok Airways from BKK to CNX about 1 hour flight and in economy you get a meal and drink. You schmucks in the US let the airlines treat you like cargo.

@toddsmith8608

Сағат бұрын

Ok, i didn't know that.

Thank you, I’m looking forward to this week’s video. Thanks for the great work

What's funny is that people who pay their full balance every month are called 'dead beats' by the credit agencies.

@hogger51

2 күн бұрын

But, I get a higher credit score. So I'm a happy deadbeat...

@jimshoe402

2 күн бұрын

830 FICO a DB

@jb-qi8fz

2 күн бұрын

@@hogger51 And I sleep well at night so I'm an even happier deadbeat

@empireoflizards

Күн бұрын

I remember that. Because late payments they can charge fees and higher defaulted interest rates. So, someone who pays on time is 'the bad guy'. lol

@tomholtom7811

Күн бұрын

@@hogger51 not necessarily. Paying off your card in full actually makes you less attractive to lend to, as the banks won't make any money from you. Backwards though right!

As a video editor using Adobe Premiere, that screen at 3:02 has to be your worst nightmare especially when you're doing a delivery for a client

@rishipopat6708

2 күн бұрын

i saw that and got immediate palpitations lmao

@vedanlkektokekto6872

Күн бұрын

Why though I don't understand

@OnTheRoad_Lwando

Күн бұрын

@@vedanlkektokekto6872 This means, the original attached media on the video e.g picture here, was moved to a new drive or location. So if you don't link it back to the video before exporting, it will show offline media.

@OnTheRoad_Lwando

Күн бұрын

@@rishipopat6708 I am busy editing a video and I thought it was mine that was showing offline.

$4500/month for a small apartment. Holy geez. Me, sitting in my modest 1200sqft suburban home at $800/month.

3:07 ah yes the infamous “media offline” page, every editor’s worst nightmare.

@vedanlkektokekto6872

Күн бұрын

Why?? I don't understand

@IrishBelmont

Күн бұрын

@@vedanlkektokekto6872 basically means that the footage you have either got corrupted or needs to be reuploaded into the editing software you’re using. It’s a bitch and a half to deal with.

@AdamKeele

Күн бұрын

Yup, but it making it into the final cut for the client is a huge fuck up that’s easily avoided if you proof your work. I’ve certainly exported plenty of videos that it slipped in, but I always caught it. But the military has some pretty high standards for making sure you don’t do stuff like this, at least from my experience.

@toddsmith8608

14 сағат бұрын

​@@AdamKeelewhat do military standards have to do with anything?

Wow, Kelsey, really great information. Thank you. I’m going to pass this along for sure.

Airline tickets have gone up dramatically! First class ORD-Las was $800 pre covid. Now it is $1500+

@TheCornerZoo

2 күн бұрын

😮😮

@ric2408

2 күн бұрын

hush

@colormedubious4747

2 күн бұрын

First Class? Well, la de frickin' da, Mr. Rockefeller.

@WeBuild4Life

2 күн бұрын

Flight from Tampa to Japan is up from 800 to $1400 over 6 years

@andreasfischer9158

Күн бұрын

Yes, this is depressing. I am forced to downgrad to business when travelling for leisure. But once Trump is re-elected, prices will drop 90 percent.

I really appreciate your knowledge and willingness to share it, Kelsey. And your sense of humor. Thank you.

Good morning fave 😊 Just saying hi while the ad plays. Always look forward to every other Sunday. See you in Osh ❤️

Howdy Kelsey. You have an uncany knack for "jesting" and entertainment with your vids. Thank you!😊

@roderickcampbell2105

2 күн бұрын

Uncanny is an underused term.

I had no idea! Thanks Kelsey - what a great episode!

Thanks so much for creating and sharing this video. Great job. Keep it up.

Try buying an airline ticket in Canada, we are getting royally gouged. Our two airlines, air canada and westjet have to keep buying new calculators to total their massive profits.

The credit cards carry obscenely high interest rates. Unless you pay your balance every month, you are screwed.

@gwag8410

42 минут бұрын

And that’s what they count on… if it were anyone besides the banks, it would be called loan sharking ..

Thank you Kelsey for teaching me something today. When trying to figure out what motivated behavior, look for the incentives and judge accordingly.

I learned something today. Thank You.

Agree 100%. NEVER carry a balance on a credit card.

@CheezeCracker

Күн бұрын

If you mean balance... as in remaining room on card, I'm 100% with you

@chefmastermikecmm8465

Күн бұрын

This is the best time to carry a balance on 0% apr cards, which a lot of that data is coming from. Making 5% from money, I was going to spend anyway. A lot of this talk is fear porn. Aka clickbait.

@richardvoogd705

Күн бұрын

These days I'm inclined to avoid credit cards, using a debit card instead that won't build up a massive debt if I don't have money in my account.

@adamsmith1813

Күн бұрын

I only keep a tiny balance so it shows I'm using credit. Got my first card at 18, already got limit increases and got a good score at 20.

@hamsterama

Күн бұрын

@@chefmastermikecmm8465 Absolutely, it's silly to pay off a 0 percent apr card. I applied for a United Gateway card last year, and it's 0 percent apr for the first year. The card has no annual fees, and I'm making interest off of United's and Chase's money. On top of that, I'm earning miles. I should note that I'm someone with good impulse control. I only spend within my means. When the "big bill" comes due at the end of this year, I'll have no problem paying it off in full.

The cost for a regular seat may be low when booking 2 months early, but the cost to fly in a few days is very high. I often see $900 to fly nonstop roundtrip between 2 bigger cities, while the cost for others is around $300. Like credit cards, the late bookings increased fare is used to offset the low cost for early bookings to average the income from the flight much higher.

I really learned something here. Thanks Kelsey.

Thanks for the info! Safe travels.

I love your videos because they are just basically roast compilations hidden in funny and useful content 😂😂😂

"If you think like me"; they don't. That's why humanity is screwed.

@TankR

Күн бұрын

""if you think..." they dont. Thats why humanity is screwed" Fixed that for you 😁

@eekee6034

Күн бұрын

@@TankR Haha! But the arguments they come up with for not thinking are themselves some pretty incredible pieces of reasoning. ("Incredible" is working really hard in that sentence; there's so many ways it can apply, including its original "in-credible", meaning a perfectly literal "unbelievable".)

Thank You for the fun piloting video.

Congrats on your four stripes, Kelsey! Haven’t been on your channel for awhile so that was a pleasant surprise!

The problem with secretly being a bank is that you’re subject to two different but linked sources of risk.

I fly a lot for work and I’m a) constantly annoyed that the flight attendants spend so much time trying to get passengers to take and sign up for their credit cards b) blown away at how many people actually take those applications on the plane Insane

@hamsterama

Күн бұрын

I'm one of those naughty people who signed up for a United credit card after a flight. I'll explain. Until I read the "literature" in my seat's back pocket, I didn't know that United had a credit card tier with no annual fee. I only use my new United card at places where you get double points (like when paying for gas), and during promotions where you can earn bonus miles. Otherwise, I use my regular cash back credit card from my bank. I fly with United at least a couple times a year. Airline credit cards are useful if you are somewhat loyal to a particular airline. I also fly frequently on Southwest, but I haven't signed up for any of their credit cards, because all theirs have an annual fee.

@unhandled12345

22 сағат бұрын

I just took an application on a Hawaiian flight. I'm in for the bonus miles. I never carry a balance.

@randc47

12 сағат бұрын

@@unhandled12345 I do the same. Paid off each month and rack up the miles. You and I are not who the airlines are truly targeting. Haha.

@lizcademy4809

38 минут бұрын

I would take a no-fee card ... but there are very, very few with good perks. The card companies lose money on me; I pay the card off every month.

Thanks for the very insightful video.

Thank you for your time and posting. In the early '90s, in Australia, a plane ticket across the country (Perth to Brisbane let's say), was about $2,000; economy.

Those loses have actually become part of the business model - airlines have found there's MASSIVELY more profit in the banking industry and so are running the flights at a loss to lure as many people as possible into their loyalty credit cards which they make an absolute fortune on

74 Gear... Making aviation even better...#1

Great stuff! Thanks for sharing.

Very interesting analysis Kelsey. I'm in Europe and we don't have this craze on credit card, it something that's just not that much in our habits. And no private company other than banks or specialized business offert credits. It's highly regulated. And indeed even cheap airlines (totally not looking at this irish one???) are pricing more and more, and tends to cut cost as best as they can.

Its always a good day when this guy uploads

@valleyjaye

2 күн бұрын

Facts! 🤗

@AlphabetSoup64

2 күн бұрын

@@valleyjayeAnd I definitely press the like button when he posts!!

Thank you for your content.

What an eye opener, Kelsey! Thank you for this insight. I'm a flight attendant with a major airline, so this puts it in perspective. And I keep hearing you say "I'm not very smart!" LOL

I think you're right and I agree that the government shouldn't be bailing out businesses. Businesses should fly or flop on their own accord. If they employed 100,000 people and die, so be it, it's not the government's job to step in and 'save' everybody. As always, thanks for sharing.

Good mornin’ Captain

Love your posts. Pete from Oxford UK.👍👍

Kelsey I just wanted to say thank you for your post on airlines suffering and ticket prices to go higher..I have been predicting this for years.

Thanks for all the great information... I have been pricing flights to Europe for fun for a few years now. United Air Lines just started charging EXTRA for the cheap seats... approximately 20 usd for cheapest seats, so you buy your ticket and THEN you get to buy your seat. Drop dead airlines.

Good grief. Why would anyone not pay off their entire CC balance every billing cycle? Makes no financial sense at all, unless you had some kind of medical emergency or car breakdown. Live within your means folks!

@johnsmith9716

Күн бұрын

Most smart people who have self-control dont put more on their CC than they can pay off in a billing period. Consistently carrying a balance is stupid, why would you give these shitty CC companies free money?

@robkno8816

Күн бұрын

Some pay minimum, makes my brain sizzle

@joesterling4299

Күн бұрын

Right. Your furnace may break or your car may need unexpected extensive repairs. Most people can't pay that out of pocket, even if they're savvy enough to pay all their normal bills fully and on time every month. You may be able to get a low- or no-interest loan, but not always. In that case, I'd take the hit on the high yearly interest for a few months--pay as much as I can each month. Hasn't happened to me yet, though. I've managed to avoid CC interest for a long time.

@drunvert

Күн бұрын

Nobody does

@unhandled12345

22 сағат бұрын

@@joesterling4299 Get a home equity loan if your furnace breaks. CC interest is north of 25%. Even a bad HELOC comes in under 10%

Thank you for sharing you insight into my industry.😊

That was a great video Kelsey! Good to know as a travel agent.

Branded airline cards are just like any other credit card, in that they’re a useful tool if you only buy what you need and can afford, and pay your bill in full every month. But if you live beyond your means and rack up debt, credit cards can wreck your life.

Thanks, Captain! Very nicely explained. Personally, I think it may be a good thing though. Flying has become a horrible experience, it’s uncomfortable, unreliable and the employees treat passengers with contempt. Upon witnessing a lot of passengers behavior, it’s hard to blame the employees but the cycle seems to feed itself. Flying used to be fun and enjoyable but those days seem to be gone. Maybe increased prices will bring some respect back to the industry. Even if it takes me longer to save up enough for a flight, at least it will seem worth it in the end because right now, even if I only spent $137 I still feel ripped off.

Man Kelsey, this is way different from your normal content, but I'm super glad you explained this!

Love your chanel this is a great video and everyone needs to see it, most people really have no idea how this works

I knew the ticket prices were artificially low, but I had no idea where/how they were making it up. WOW! Thanks for the heads up. Yikes! I say that as a tax payer...too big to fail....been there, done that :-(

Kelsey's straight savage on the simps today. 😂

@CheezeCracker

Күн бұрын

Question is, besides food, does Kelsey have another addiction? edit: grammar

@wmopp9100

Күн бұрын

​@@CheezeCracker free breakfast and sunscreen

@robkno8816

Күн бұрын

Spreadsheets and Edgar

I thoroughly appreciate your honesty and frankness. Thank you!

This was so insightful. You just won a subscriber.

Honestly Kelsey, as an economics enthusiast, I was surprised at the quality of this video. You know the empire is crumbling when the President's chief financial advisor admits in an interview that he doesn't know what bonds are or how central banks work, the country's preeminent Nobel economist is an arm's length state propagandist whose salary depends on his ability to pretend that he doesn't know he's lying, and we're getting solid, sober, concise industry-targetted financial analysis from a freight transport pilot on KZread.

@galician-tolo8149

Күн бұрын

May your Hayek let you see the _hordes_ of working poors, a dire problem created by the top capital and their cronies at the right places, not by any Keynesian looney

@robkno8816

Күн бұрын

Hayek price signals, worthy of that Oslo award

Well, There's only one option. The airlines will have to stop providing snacks..... And Kelsey just Googled "How much does it cost to hire an assassin"

Brilliant. I did not know this. Thank you so much.

a very lucid examination, appreciated

Airlines are just very elaborate credit card companies.

@Sonny_McMacsson

Күн бұрын

In the end, you either go bankrupt or live long enough to become a consumer creditor.

I woke up before 9:00 a.m. today, so I just sit refreshing, waiting for Kelsey's video. Have a great day, everyone. Thank you!

@scheidtenatorgaming

2 күн бұрын

Guilty as well!

wow i had no idea. thanks man

Nice job Kelsey. Thanks for helping a fellow “not very smart” person understand the profit & loss of the airline industry. You were concise & on point throughout your presentation. Thanks again for a very interesting subject.

Hanging out with the chickens in Little Havana

Corrected title: "Former Airline Passengers About to See America First Through the Windshields of Their Cars."

@charlesyork680

Күн бұрын

Not at a 300 mile range of your new Electric Car.

@colormedubious4747

Күн бұрын

@@charlesyork680 Given that, out of 280 million cars on the road in the USA, only THREE PERCENT are electric, I don't see that as a serious problem. My current pickup truck has a 400- to 500-mile range per fill-up, depending on terrain and my skill at hypermiling on any given day (22mpg factory-fresh but I've had it up as high as 26mpg). My next truck will be a plug-in gas-electric hybrid with far more spectacular range and mileage numbers. I'll get my kicks on Route 66!

One of your best videos. Love this kind of info, keep it up

such an eye opening video ! very well put across , seems you are a man of many skills :)

Artificially low ticket prices are allowing people who normally wouldn't fly to be able to get on a plane....And it shows.

@Dominic1394

Күн бұрын

How?

@Sonny_McMacsson

Күн бұрын

@@Dominic1394 The riffraff getting uppity in the videos.

The corporate world --> lobbyists --> career politicians --> taxpayers getting screwed!! They'll keep doing what they're doing until they're held accountable!!

Very informative. Love your channel!

Woah! How did you know my girlfriend's mom was sick?

@robertpearce8394

2 күн бұрын

She's MY girlfriend.

Fun fact: the two companies with the most employees on food stamps and Medicaid are Wal-Mart and McDonald's. Walmart made $11.7B in *profit* last year, and McDonald's made $6B.

@KB-ql8cx

Күн бұрын

Source? Not doubting, just would like to read it.

@werefrogofassyria6609

Күн бұрын

Actually, McDonald's Corporate, where the profits are held, has very few people on government assistance. The franchises, which are separate companies under the banner of McDonald's name, but they have to pay in to the corporate for the corporate to have its profits of $6B. The individual franchises have some issues getting to that profit levels. A raise of 5 cents per hour is quite the hit to the individual store at the prices listed. Walmart, alternatively, doesn't have an excuse. Don't shop at Walmart.

Very informative thank you.

That's a very good analysis!

Good morning to you from Chicago Captain Kelsey. I hope this day finds you well and happy and prosperous, BROTHER ! KEEP THE BLUE SIDE UP 🛩🫡

@jimshoe402

2 күн бұрын

😁😁😁😁😁

What happened at 3:02 👀

@tudalex

2 күн бұрын

Premier is missing a file

Super informative! Thanks!

Great breakdown, Kelsey!!

I wish the video was more accurate. The rate of unemployment is probably the most watched economic indicator in a developed economy, is not really something that can be influenced by whom forgot or not to apply for unemployment. So fostering this concept in a video with the goal of making easier to sell the larger concept doesn help the greater credibility of it . While I don’t disagree with the disdain that generates a broken business model where great profit and bonuses alternate with government bail outs , the role of the credit card business and well as the likelihood that default rates and a ‘greater’ unemployment rate will generate the castle to crumble and foster the next bailout is speculative at best. Both delinquency rates and debts are highly watched and the video ignores a significant fact . Delinquency rates going higher does indicate a weakening of the spending power but is many occasions drives also profit margins of the credit card companies as the non delinquent debt also racks up higher interest rates. Credit cards are a growing business for them but not necessary the culprit of all issues . Airlines have been historically more reckless by not hedging their fuel cost, doing mergers that reduce competition etc. They certainly do a lot to be hated and I do agree that prices ( adjusted for inflation ) remain low especially for anyone planning ahead . Still there no “secret” losing money and the credit card roles is one of many additional revenue streams they have had over the years . Spirit and the regionals have trouble selling credit cards. The usability of points to travel is limited on a small airline and these days, where we all struggle with poor service , additional fees for everything, cancellations and reboookings, while still wanting to travel a lot . Big airlines credit card give points and status that helps alleviate the struggles of modern travelling . Love the channel BTW. Not trying to be a smart*as just think the issue is very complex and the video ended up with an oversimplification that makes it shallow

@Kris-ib8sn

14 сағат бұрын

And there is still fewer women in the work place post covid because its more affordable if mom stays home to watch the kids because daycare is unaffordable.

Airline ticket sales about to plummet.