Author: Dr. Luis MARTIN-DOMINGO
The airline business is a very competitive sector, which leads to variable levels of profitability. For example, IATA (2020) reported an industry average of 9% profit margin during 2019, when airlines worldwide achieved a record high 82.6% load factor. However, those profit levels changed quickly into loss during 2020 due to the COVID-19 pandemic. The objective of this chapter is to allow the reader to understand the concept of airline profit, profit margin and the key criteria contributing to airline profitability.
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