Hey Snackers,
Welcome to our special travel edition!
If you enjoy traveling to far-flung locations but experience FONBO (fear of not being online, an acronym we just made up) in areas where service is spotty, Twitter cofounder Jack Dorsey may have a solution for the texting part of that equation: Bitchat, his new Bluetooth-based messenger service that doesn’t rely on an internet connection, cell service, or even phone numbers. Here’s how it works.
Before we take off on our special travel journey, your captain would like to report on yesterday’s markets: the S&P 500 rose 0.6%, the Nasdaq 100 gained 0.7%, and the Russell 2000 advanced by 1.1% on Wednesday. Bitcoin reached a fresh record high for the first time since May, hitting a peak of 112,009.39, and Nvidia joined the $4 trillion market cap club, a league of its own.Â
The profit airlines make per passenger will surprise you
It’s widely reported that airlines are raking in more money off checked bags and pricey credit card fees and partnerships than they used to, but the biggest contributor to their revenue is still from the actual passengers who sit in those seats in the sky. But revenue is one thing and profit is another, and we were shocked by how little profit is made off actual passengers. Â
An analysis of company reports and data from the Bureau of Transportation Statistics shows that between 2021 and 2024, the big four US airlines (Delta, United, American, and Southwest) earned approximately $5.51 in profit per passenger. That’s down sharply from 2016 to 2019, when the companies’ profit per passenger averaged $19.26.
Then, in the first quarter this year, as carriers reeled from tariffs and a decline in travel spending, the figure dropped to under a dollar. Of course, first quarters are also typically airlines’ least profitable, but look at those terrible trend lines!Â
It’s hard to lump all airlines together, though:
One expert said, “They could theoretically be losing money on some routes that they absolutely have to fly, or they could be making a ton of money because they have no competition there.”Â
Airlines’ bottom lines can vary dramatically from year to year due to things like terminal construction costs, leases, fuel prices, and labor contracts.
Tariffs have led Delta to yank its guidance even as it scored $2 billion from its American Express card in the first quarter alone, a 13% year-over-year rise.
In any case, declining margins can shed light on why budget carriers have spent recent years un-budgeting themselves, adding premium seating categories, lounges, and, in Southwest’s case, ending some of their most popular cost-saving policies to rake in additional cash from fees. Checked luggage charges totaled $7.27 billion last year among the country’s largest airlines — up more than 26%, or $1.5 billion, from 2019. It’s been a rapid ascent for the revenue category, which Spirit introduced in the US less than 20 years ago, in 2007.
The Takeaway
These newer revenue streams have helped keep ticket prices relatively low for years, but that time may be ending. The shift away from the budget model and larger lack of competition in the industry could soon drive costs for consumers much higher. Since 2007, just two new scheduled passenger airlines have launched in the US. That’s the longest stretch of time in US aviation history with only two new airlines.
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Pacaso: 3 new cities on the horizon + Nasdaq ticker secured
They have their sights set on adding homes in three new cities; Rome, Milan, and Florence. They even reserved the Nasdaq ticker PCSO.1
That’s how you follow a record-breaking 2024 — by strengthening your position even further.
At least that’s what Pacaso is doing. After setting records in Paris and London in 2024, they grew gross profits to $21.4M in 2024, increasing by 41% YoY.2
Now, the company is expanding its disruptive model even further. And with Coldwell Banker reporting 40% of wealthy Americans intend to buy a vacation home abroad within the next year, that’s a big deal.
And for just $2.90 per share, you can share in their growth as an investor today.3
The TSA is ending one of its most annoying rules
Rejoice, weary travelers, for there could soon be one less thing for TSA officers to yell at you about. The agency is set to drop the nearly 20-year-old rule requiring passengers to remove their shoes, though there will be specific ID requirements and “selected airports” may still make you expose your stinky socks until it expands nationwide.
Beyond adding to security line congestion, the rule has certainly driven thousands of frequent fliers to programs like TSA PreCheck and Clear. The policy change is bad news for the latter, as travelers will now have less incentive to fork over $209 annually for the private line-skipping service. Clear+ memberships have pushed the company’s revenue to $211.4 million in the first quarter, which has climbed by millions in recent years, as our chart makes plain.Â
The Takeaway
While hopefully this end to one of the silliest rules to fly in the US is forever, the dip for Clear may be temporary. Former TSA officer Caleb Harmon-Marshall said that the change could mark the beginning of the end of TSA PreCheck — meaning Clear or another private company could provide the perk in the future — though it will still offer theoretically shorter lines and the benefit of leaving your devices in your bag. The Trump administration has had the TSA in its sights in its first year, with Transportation Secretary Sean Duffy calling it “the #1 travel complaint” in April.Â
The Best Thing We Read Today
The most luxurious luggage? The kind you don’t have to carry
No matter how shiny and chrome your suitcase is, you still have to deal with the physical fact of lugging it around. While luggage sales are soaring, along with airlines’ profits from the fees paid to check those bags (even, alas, now on Southwest!), we dove into the history of what seems like a most magical practice and why it hasn’t manifested itself stateside: luggage forwarding services.
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There’s a new model on the luxury market — and it’s not what you think
Wealthy Americans are traveling differently, with 40% planning to buy a vacation home abroad within a year. No wonder Pacaso made $21.4M in 2024 gross profits with their co-ownership model, showing 41% YoY gross profit growth last year alone.2
They even reserved the Nasdaq ticker PCSO.1 And you can invest for just $2.90/share.3
Off The Charts
What Else We're Snackin'
Goldman Sachs bought three Greek hotels three years ago, but is already saying “Adio!” to the businessÂ
Americans want a second passport and are willing to pay: here’s how much it costs to buy citizenship abroad
Done with people altogether? Meet the wild business of desert island tourism: pay thousands of dollars to be stranded on a remote island with no food, shelter, or water
More of a road tripper than a flyer? Here’s which EV goes the longest on a single charge and which gas-powered car holds the single-tank distance record
And here’s a guide to driving from Nevada to Maryland on the “loneliest road in America”
Finally, PopSci answers a question surely we’ve all had: how do airplane toilets work?
Join leading investors: Well-known investors are backing Pacaso, the disruptor that’s earned $100M+ in gross profits since 2021,4 bringing real estate co-ownership to 40+ top global destinations. Invest today for just $2.90/share3
Snack Fact of the Day
Boeing delivered 280 planes in the first half of 2025, but Airbus delivered even more.
Today's Events
Earnings expected from Delta, Conagra Brands, and Levi Strauss & Co.
1 Pacaso recently received their ticker reservation with Nasdaq ($PCSO). Reserving the ticker symbol is not a guarantee that the company will go public. Listing on the Nasdaq is subject to approvals.
2 Past performance is not indicative of future performance. Gross profit growth is based on the offering circular and 1-K. This gross profit growth has been driven by both the type and the price of units sold. For more details on the gross profit for 2023, please see management discussion of the financial condition section of the offering circular (p.41). For more details on the 2024 gross profit, please see the 1-K Financial Statements section (p.12).
3 The minimum investment is $1,035.52 when including the 3.5% investor fee. This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular and related risks at invest.pacaso.com.
Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.
4 The $100M gross profit is calculated from 2021-2024. For more details on the gross profit for 2021- 2023, please see management discussion of the financial condition section of the offering circular. For more details on the 2024 gross profit, please see the 1-K Financial Statements section.