Abstract
The airline industry's profitability assessment remains a complex yet critical aspect of strategic decision-making, spanning from hub profitability to individual flight performance. This paper explores the diverse methodologies and challenges involved in evaluating both line and network profitability, emphasizing the need for innovative approaches in reconciling variable costs associated with aircraft types and route assignments. Traditional methods are juxtaposed with innovative concepts like the Blended Aircraft Cost model, offering insights into enhancing market route profitability. Additionally, advanced methodologies such as horizontal and vertical methods are discussed, alongside the role of artificial intelligence in revolutionizing real-time profitability analysis. Through a comprehensive examination, this study underscores the imperative for airlines to leverage sophisticated tools and technologies to navigate the dynamic and competitive landscape of the industry, highlighting avenues for further research and development to ensure financial sustainability and competitiveness.
Keywords
airline profitability, blended aircraft cost model, artificial intelligence
ORCID Identifiers
Elif Degirmenci: https://orcid.org/0009-0000-8448-7634
DOI
10.5038/2771-5957.4.1.1063
Recommended Citation
Degirmenci, E. (2025). Exploring strategies and innovations in airline profitability assessment: the role of artificial intelligence. Journal of Global Hospitality and Tourism, 4(1), 85-88. https://www.doi.org/10.5038/2771-5957.4.1.1063
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Included in
Aerospace Engineering Commons, Business Administration, Management, and Operations Commons, Hospitality Administration and Management Commons, Maintenance Technology Commons, Social and Behavioral Sciences Commons, Tourism and Travel Commons
