Respond to the discussion questions. Air Travel Demand.

Air Travel Demand
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Air Travel Demand
Introduction
Looking closely at the current business environment under which airlines are operating and it becomes apparent that there are two major factors that widen the demand and supply gap. The first one is the rising fuel prices that have really increased the cost of provision of service and has really made airlines operations quite hard to be a sustainable operation. It would be seen that how external factors have affected the air travel demand and challenges faced by airlines these days.
Discussion
World economy has been suffering from the global economic crunch which means that there is lower trade resulting in fewer cross-border movements (Madas & Zografos, 2017). As per recent estimates carried out by IATA, the cost of business is increasing at a rate of 7.5% whereas the surge in revenue is expected to be about 6.5%. What happens is that all these things put a huge dent on the operational management of the airlines. Furthermore, the capacity of the airlines has also increased but the passengers are not there in the first place. The rising fuel cost is not the only deterrent to the flight operations as the incre...