While airlines are beginning to return to profit, we may wonder whether this will be sustainable. Part of these profits is indeed due to favorable economic conditions. If the airline operating costs were to increase again, the return to equilibrium would be greatly undermined. So how do airlines pass-through their cost variations?
This article (in French - "Des compagnies aériennes à la situation précaire") offers some insights on this question based on a research article written by Carl Koopmans and Rogier Lieshout, entitled « Airline cost changes: To what extent are they passed through to the passenger ? » that has been published in Journal of Air Transport Management.
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