What did American Airlines gain from reducing the number of flights?

In 2008, the cost of oil soared and so did the cost of jet fuel (which is refined from crude oil). In response, American Airlines announced in May of that year that it was cutting some routes and reducing the frequency of flights on other routes. (LO4-5) a) Is jet fuel a variable cost or a fixed cost? b) What did American Airlines gain from reducing the number of flights? c) Was the airline more likely to cancel flights that tended to be filled to capacity, or ones that typically flew partly empty? Explain. d) The latest generation of airplanes from Boeing, the 787, uses less fuel than many of the aircraft currently being flown (see “Spotlight: Boeing’s Long-Term Decision”). If American Airlines could replace its aircraft with more fuel-efficient models, would it want to increase or decrease the number of flights? e) Since 2008, oil prices have fallen sharply and so have jet fuel prices. All else being equal, how would that change in prices affect airline profits?

Don't use plagiarized sources. Get Your Custom Essay on
What did American Airlines gain from reducing the number of flights?
Just from $13/Page
Order Essay
Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.