Airline Industry Value Drivers

The top three cost drivers for ninety five percent of the world’s airlines, are: fuel, personnel and the cost of aircraft, which together account for an average of 64.3% of an airline’s total cost structure. Dependence on oil production, labor agreements and a duopoly in aircraft manufacturing prevent airlines from having any substantive impact on these cost drivers. With revenues fixed by competitive ticket pricing and the majority of their costs out of their control, airlines are challenged to maintain earnings and gain competitive advantage by controlling less than 35% of their cost structure.

Find Great Value Stocks Cryptocurrency for Beginners. The airline industry is extremely sensitive to costs such as fuel, labor and borrowing costs. Cisco 2960 Switch Ios Image For Gns3 Iou on this page. Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.