Play along with me for a second;
The airline industry has been notoriously unprofitable at the aggregate for many years – yet BLNs of dollars are being poured in despite hereof.
As an example;
Invested capital for the airline industry was 220B in 2023 earning an economic profit of -3B (economic profit is defined as ( ROIC – WACC ) x Invested Capital))
How would you explain this an economist?
How does an economist explain this phenomena?
byu/LeadingVolume3378 inAskEconomics
Posted by LeadingVolume3378