The Economics of Airlines

Aviation activities currently represent 3.4 per cent of global GDP and air travel demand is forecast to double over the next twenty years. Yet, ironically for an industry of such sheer scale and economic muscle, profit margins are razor thin and most airlines struggle to break even. This book explores the economic realities of the airline industry, how airlines compete, how they develop their business, and how demand and cost structure, coupled with the complex regulatory regime, produces the airline industry we see today.