Explain the overall profitability of the Consumer Air Transport Airline Industry?

Explain the overall profitability of the Consumer Air Transport Airline Industry?

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Expert Solution

The overall profitability of the consumer air transport airline industry is obtained by subtracting the cost involved in the air transport activities from the total revenue.

The cost of airline industries are due to maintainance charges of aircrafts, compensation to airline employees such as airhostess, pilots etc, taxes to government, international tariffs, taxes or duties. Cost involved in fuel etc. All these cost are subtracted from the overall revenue obtained by the customers through various airline activities such as transportation of people from one place to another place, movement of goods through freighter or cargo aircrafts etc.

Hence by subtracting the overall cost by the overall revenue in the airline industry can arrive at the overall profitability of the airline industry.

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keosha answered 6 months ago

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