OVERVIEW OF THE GLOBAL

AIRLINE INDUSTRY AND HOW THE

MOVEMENT OF OIL PRICES IMPACT
THE INDUSTRY

TA B L E O F C O N T E N T
Global Aviation Oil and Air Fare comparison
Slide-1:
Slashing in Global Aviation Oil prices and
Slide-2: consequent Profit of Airline Companies
Social and Economic benefits of Aviation
Slide 3: Sector

450.0

400.0

AVERAGE FUEL PRICE VS AVERAGE

TICKET COST
3.5

3.0

350.0
2.5
300.0

250.0

200.0

2.0
Average Ticket Cost in $
1.5

Average Fuel Price,

($ per Gallon)

150.0
1.0
100.0

50.0

0.5

0.0
0.0
20002001200220032004200520062007200820092010201120122013201420152016

Data Source: Bureau of Transportation Statistics

International Oil Prices has a direct Impact on the operating cost

of the Aviation industries.
As we can see in the above graph Air fare varies in direct
proportion with Oil Prices

40

GLOBAL COMMERCIAL AIRLINE

PROFITABILITY VS AVERAGE FUEL PRICE
3.5

30

3.0

20

2.5

10

2.0
Profit in $ Billion

Average Fuel Price ($/Gallon)

1.5

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-10

1.0

-20

0.5

-30

0.0

Data Sources: IATA, ICAO

Profit of Airline Sector varies inversely proportional to the international oil

price, as due to high oil price, air fare goes up and ridership decreases
Low oil price means more traffic and less operating cost and even less
popular areas can be covered through air, provided infrastructures are
available.
Due to 9/11 attack, years 2001-2004 performed poor inspite of low oil

ADVANTAGES OF AIR TRANSPORT

The following are the main advantages:

1.High Speed:
It is the fast speed means of transport. Passengers and goods can be transported
easily from one place to the other.

2.Strategic Importance:
An airway has great strategic importance. It can be used for internal and external
security.

3.Easy transport of costly and light goods:

It is quite convenient to send costly, light and perishable goods through air
transport.

4.Free from physical barriers:

Air transport is free from physical barriers like river, mountains and valleys etc.

5.Useful for Agriculture:

Air transport is useful for aerial spray on pests and insects which cause harm to
crops.

6.Useful in natural calamities:

During earth quake, flood, accidents and famine air transport is used for rescue
operations.

nk you v
much
-Abheek Kr. Chakraborty

+91-7503880216