Air travel economics

Air travel economics involves the financial principles that govern airlines and the aviation industry. Key factors include supply and demand, operating costs (like fuel, maintenance, and salaries), ticket pricing strategies, and competition among airlines. Airlines aim to maximize revenue by managing seat availability, routes, and schedules. Economies of scale also play a role, as larger airlines can lower costs per passenger. Additionally, external factors such as global events, fuel prices, and government regulations significantly impact profitability. Ultimately, effective management of these elements determines an airline's success and sustainability in the market.