The Factors That Influnce Airline Industry
Introduction
In recent years, affected by natural disasters, emergencies, oil price volatility, the international financial crisis and other factors, especially the oil price, that is the most major factor of the airline cost, and still increasing, made the airline industry’s production decline shaply.
The main source of profit for the airline industry are passenger and cargo revenue primarily, in addition, the fuel surcharges and exchange gains constitute the major part of its profits. According to these factors, airline companies will make a expection development whether they can benefit or loss, and they will expect how much they will benefit or loss. However, the question that over the past 10 years, airline has lost $50bn, but it is less than the expected losses shows that the expect losses larger than actural losses. So, as the following we will discuss from the economy factor, fuel price, aviation industry internal adjuetment and economic policy adjustment, ect. these determines to explain why the expected losses more than actural losses.
the factors that influnce airline profit
The determines that influnce airline expected losses more than actural losses. 1. Economy development.
Sustained economic development, frequent travel between regions, rising national income will further enhance the community 's demand for air transport services. 2008, Chinese urban residents per capita disposable income reached 15,781 RMB, in nominal terms, it was 2.9 times larger than in 1988; the same time, the 2007 cash income of rural residents in nominal terms, was 2.3 times more than in 1998. This directly expanded the choice of the national travel outside, expanding the potential development of air transport.
(Source: Bureau of Economic Analysis)
Statistics show that air turnover and GDP growth is positively related, and higher volatility. Decline in the GDP growth trend, the growth rate of airline’s total turnover is often decreased faster, for example:
In recent years, affected by natural disasters, emergencies, oil price volatility, the international financial crisis and other factors, especially the oil price, that is the most major factor of the airline cost, and still increasing, made the airline industry’s production decline shaply.
The main source of profit for the airline industry are passenger and cargo revenue primarily, in addition, the fuel surcharges and exchange gains constitute the major part of its profits. According to these factors, airline companies will make a expection development whether they can benefit or loss, and they will expect how much they will benefit or loss. However, the question that over the past 10 years, airline has lost $50bn, but it is less than the expected losses shows that the expect losses larger than actural losses. So, as the following we will discuss from the economy factor, fuel price, aviation industry internal adjuetment and economic policy adjustment, ect. these determines to explain why the expected losses more than actural losses.
the factors that influnce airline profit
The determines that influnce airline expected losses more than actural losses. 1. Economy development.
Sustained economic development, frequent travel between regions, rising national income will further enhance the community 's demand for air transport services. 2008, Chinese urban residents per capita disposable income reached 15,781 RMB, in nominal terms, it was 2.9 times larger than in 1988; the same time, the 2007 cash income of rural residents in nominal terms, was 2.3 times more than in 1998. This directly expanded the choice of the national travel outside, expanding the potential development of air transport.
(Source: Bureau of Economic Analysis)
Statistics show that air turnover and GDP growth is positively related, and higher volatility. Decline in the GDP growth trend, the growth rate of airline’s total turnover is often decreased faster, for example: