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Report on the Airline Industry

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Added on  2020-05-08

Report on the Airline Industry

   Added on 2020-05-08

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Running head: AIR INDUSTRY 1Air IndustryStudent name:University:
Report on the Airline Industry_1
AIR INDUSTRY 2The airline industry offers service to nearly every part of the world and therefore is seen as a fundamental part of the global economy stabilizer. The airline industry itself as an economicpower also assists some other related industries to grow (Vasigh & Fleming, 2016). However, there are a number of challenges that the industry undergoes during its operation. Therefore, this paper will mainly address the expenses and costs that the air industry faces and how they have a resultant effect on the ticket prices and flying occurrences. Operating an airline industry is not arguably expensive especially when it comes to the management of the labor force. The labor of managing an airline industry accounts to about 35%of the total airlines operating expenses. This ranges from hiring the pilots, flight attendants among other management teams. The cost of paying the salaries to the entire flight staff is usually huge. As such, the flight management must consider this factor in the ticket pricing in order to generate some profits. Also, fuel cost for the airline industry is usually very expensive. Fuel cost represents one of the largest chunks of airline industry expenditure. Averagely, fuel expenses account for about 29% of all the operational expenditure. Jet fuel is the main type of fuel which is used by the passengercarrier flights among other aircrafts. This fuel is usually a product of oil and therefore the two arecorrelated. With the fluctuation of oil in the global market, the jet fuel is usually affected too. Therefore, when the oil prices go up the passenger tickets and other air transport means are also likely to increases so that the industry can realize some profits. Flight catering is becoming a more important event in the air industry. For instance, a large airline which moves over long distances is required to serve its passengers on board with meals and other required necessities. Therefore, it is required to load thousands of items before it
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