Abstract
This paper examines the impact of rising fuel prices on future air traffic. Using route and carrier specific data the short-term impact of higher fuel prices on airline operating costs, passenger fares and demand for short-haul and long-haul services is analyzed. Results suggest that the air traffic growth, constrained by scarcity of kerosene, will be much lower – or even negative – than unconstrained air traffic growth. Services offered by low-cost carriers and long-haul services are most adversely affected. Further, a strong increase in fuel prices outweighs the impact of proposed emission trading systems for the aviation industry.
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© 2009 Springer-Verlag Berlin Heidelberg
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Klophaus, R. (2009). Kerosene’s Price Impact on Air Travel Demand: A Cause-and-Effect Chain. In: Conrady, R., Buck, M. (eds) Trends and Issues in Global Tourism 2009., vol 2009. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-92199-8_6
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DOI: https://doi.org/10.1007/978-3-540-92199-8_6
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