It is very common for a company to lose money, but it does not mean that it will go bankrupt if it loses money.

First of all, all companies make losses when they are first established. In the initial period, they only have expenses and little income. Only when you find a market and occupy a certain position in the market can you have stable income. Generally, it takes a long time for a company to break even, which may be months, years, or decades.

The operating costs of the aviation industry itself are very huge. As one of the oldest companies in the world's aviation industry, Pan Am maintained good performance until the late 1970s when the United States deregulated the aviation industry. However, as soon as controls were deregulated, many emerging airlines joined. Competition means that it takes a long time for a large company like Pan American to adjust its business direction, so it is not surprising that it will suffer losses. But at that time, Pan Am held the execution rights for many routes, which were inestimable intangible assets. In addition, Pan Am’s fleet was one of the largest in the United States and even the world, so it can be said that even though Pan Am was losing money, it still It is a very powerful airline. In this case, no one will stop operations immediately, but will do everything possible to try to reverse the loss situation. Unfortunately, Pan Am did not escape the fate of bankruptcy.

In fact, most companies in the world's aviation industry are currently in a state of loss. However, although many companies are limited companies, they have state background, or the state is the major shareholder, so they cannot collapse.