مقاله سال ۲۰۱۶

Airline costs may change for various reasons, such as alternations in input prices, labour conditions, taxation regimes and airport charges. The main cost source for airlines are fuel costs. In 2014 fuel costs represented around 20e50% of total costs, depending on the type of airline (see Table 1). The price of jet fuel has shown great fluctuations over the past 15 years. At the start of the millennium, one barrel of jet fuel cost $33 (see Fig. 1). By the summer of 2008 prices had increased five-fold to $163. Then the financial crisis hit causing a sharp price decline; by the end of 2008 a barrel of jet fuel cost $58. The subsequent economic recovery and the improving political situation in the Middle East led to a strong recovery, with jet fuel prices averaging at around $120 per barrel between 2011 and 2014. Since 2014, prices have decreased sharply due to overcapacity in the market.

Volatility in cost levels implies risk to the airline operation, especially when higher costs cannot be passed through to the passenger. The pass-through rate is not only relevant for airlines, but also for airports, policy makers and researchers. The impacts of a policy measure, such as a charge or tax increase, depend to what extent the cost increase is passed through to the passenger. When cost increases can be passed through for 100%, they are fully borne by an airline’s passengers. However, the airline itself may also be affected. A full pass-through leads to higher fares, which will e depending on the elasticity of demand e result in lower sales. Furthermore, when an airline’s competitors do not raise their fares, the airline’s market share, sales and profits fall. If, on the other hand, the cost increase is not passed through to the passenger, the volume of demand remains the same, but profits of the airline will be negatively affected.