The Airline Business Model

The airline business model involves selling seats on scheduled flights to passengers. Airlines generate revenue primarily from ticket sales, but also from additional services like baggage fees, in-flight sales, and loyalty programs. Operating costs include aircraft maintenance, fuel, staff wages, airport fees, and aircraft leasing or purchases. Airlines aim to optimize flight routes, aircraft utilization, and load factors (how full the plane is) to maximize profitability. They often manage fluctuating demand by adjusting capacity, pricing dynamically, and forming alliances or partnerships for broader reach. Overall, success depends on balancing costs with revenue while providing safe, efficient, and reliable service.