The United States airline industry was officially deregulated on October 24, 1978, when President Jimmy Carter signed the Airline Deregulation Act into law. Before this historic act, the commercial airline industry was treated like a government-controlled utility; the Civil Aeronautics Board (CAB) strictly controlled which airlines could fly on which routes and dictated the exact prices they could charge. This kept air travel as an expensive luxury for the elite, with airlines competing only on the quality of their meals and cabin service rather than price. Deregulation completely transformed the industry by allowing market forces to determine fares and routes, leading to intense competition and a dramatic drop in ticket prices—adjusted for inflation, fares have fallen by over 45% since 1978. This era saw the rise of iconic "low-cost" carriers like People Express and the expansion of Southwest Airlines, as well as the adoption of the "Hub-and-Spoke" system at major airports. While deregulation made flying accessible to the general public, it also led to the collapse of legendary "legacy" carriers like Pan Am, TWA, and Braniff, who were unable to survive in the new, fiercely competitive environment where profit margins were thin and price wars were constant.