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Consumer Behavior: Jetblue vs Southwest Airlines

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Consumer Behavior

Consumer Behavior: Contrast Jet Blue vs. Southwest Airlines
Trident University MKT501 CS1

Identify key external factors that affect the passenger airline industry and explain how that impact occurs There are several external factors that affect the passenger airline industry. Some of the factors that affect the industry are economic crisis, instability in aviation fuel price, and environmental factors. I will elaborate more in detail in the following paragraphs on these factors. The first area I want to talk about is our countries current Economic Crisis, and in my opinion drives all the other factors that affect airline industry’s the most. The current economic situation is not good and therefore will have an effect on what a customer will or will not do. Air travel is very expensive as it is, in my opinion, so a sluggish economy will add more pressure on an individual or family thinking of flying anywhere. The second area that affects the airline industry is the cost of aviation fuel. If fuel prices are high, the airline will have to charge more for tickets. As I mentioned earlier, higher ticket prices is not what the public wants in our current economy. The airline industry is a business and in order to make money and continue to provide the service, the company has a breakeven price, approximately 66% of their operating cost (Airline Economics Break Even Load Factors Paragraph). If the company doesn’t break- even, they will go out of business or be bought out by someone else. The last area is environmental factors. There are numerous environmental factors that affect the airline industry. In the winter months if it snows more in one particular month and the airline industry has to apply Deicer to the plane, this is additional cost for the airlines, plus the crew that work the machine

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