MKTG1021 Lecture Notes - United Express, Long Beach Airport, Wi-Fi
Document Summary
Industry profitability and demand have been threatened by rising fuel prices and the corresponding increase in ticket prices, particularly in 2009 when the recession further decreased demand. Fortunately, beginning in 2010, airlines were able to turn a corner as more passengers boarded domestic flights due to improving economic conditions along with hefty cost-cutting measures by international airlines. Revenue is anticipated to increase 5. 3% from 2012 to 2013 in the. Domestic airlines industry and to grow at 7. 0% in the international airlines industry. Over the five years to 2018, the domestic airlines industry revenue is expected to grow at 5. 0% to . 4 billion and international airlines industry revenue is forecasted to increase at 2. 3% to . 9 billion. As consumer and business sentiments recover and spending increase, heavy passenger traffic will return. Open sky agreements and foreign tourists coming to the united states encouraged by another cycle of depreciation of the us dollar will also aid demand.
