Demand Forecasting in Aviation

Demand forecasting in aviation involves predicting the number of passengers and cargo that airlines will transport over a specific period. Airlines use historical data, market trends, economic indicators, and seasonality to estimate future demand. This allows them to adjust capacity, set ticket prices, and plan routes effectively. Accurate forecasts help airlines maximize revenue, optimize resources, and improve customer satisfaction by ensuring flights are neither overbooked nor underutilized. In essence, it’s about anticipating travel needs to make informed business decisions that enhance efficiency and profitability in the highly competitive aviation industry.