Supply and Demand Analysis

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Running Head: CURRENT MARKET CONDITIONS PAPER

Current Market Conditions Paper
University of Phoenix
ECO 365

Current Market Conditions Paper In this paper Learning Team A will explain how Delta Air Lines (Delta) has been affected by the economy, giving details about the positive and negative externalities as well as the shifts in price in elasticity of supply and demand. We will discuss how quantity demanded and quantity supplied has changed due to price changes and technology innovations. We will discuss how government regulations create surplus or shortage of airline flights.
Supply and Demand Analysis Delta is the one of the major airlines of the United States that carries cargo and passengers. Opportunities for Delta in terms of equipment are highly advanced and are constantly improving. Demand for leisure travel and the global nature of the airline industry encourage Delta to enter further strategic alliances that offer a range of measures to be taken into consideration to provide a flawless global network to be present in all major markets. Delta offers a variety of services for customers, such as online product information, fare information, flight booking, and daily flight schedules. The airline industry is an unstable industry because of various factors. One such factor is that airlines are highly dependent upon current market conditions. The passengers’ reasons for travel contribute to instability of the airline industry. Various events such as increased oil prices, terrorist attacks, and inflation significantly have changed the demand for travel through the years. Typically, passengers travel for either business or pleasure. The airline industry is elastic because leisure or vacation travel is more price sensitive (Business Travel News, 2008). Business travelers still contribute to high demand for airline travel, however, with improved technology and a global recession; a portion of the business travel has been



References: FTC.gov (2009). About the Federal Trade Commission. Retrieved December 4, 2009, from http://www.ftc.gov/ftc/about.shtm BTS.gov (November 2005.) Delta.com (2009). Book a flight. Retrieved December 8, 2009 from http://www.delta.com/booking/findFlights.do#top Delta.com (2009) DOT.gov (2009). Airline on-time performance improves in 2008. Retrieved December 12, 2009 from http://www.dot.gov/affairs/dot1609.htm FTC.gov (2009) FTC.gov (2009). Guide to complying with petroleum market manipulation. Retrieved December 5, 2009, from http://www.ftc.gov/os/2009/11/091113mmrguide.pdf Jones, G Russert, L. (2009). Airline safety bill passes. Retrieved December 4, 2009, from http://firstread.msnbc.msn.com/archive/2009/10/14/2098878.aspx?p=1 Mearian, L The Deal.com (2009). Analyst: Much maligned airline sector now undervalued. Retrieved December 9, 2009 from http://www.thedeal.com /dealscape/2008/10/analyst_much_maligned_airline.php Wilkening, R

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