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Lost opportunity: Fear of flying, airline profits, and the economy

Author

Listed:
  • Gary L. Thompson

    (University of the Incarnate Word, DBA student, Cibolo, TX 78108.)

  • Annette E. Craven

    (University of the Incarnate Word, Professor of Management, H-E-B School of Business and Administration, San Antonio, TX 78209)

Abstract

The purpose of this study is to examine the relationship between fears of flying and U.S. airline load factors to determine if there is a potential impact on corporate profits and the economy. Travelers with a reluctance towards flying represent a potential lost opportunity for airline companies, a source of operating profits, and positive economic impacts. This research examines the psychological reservations towards flying, how avoidance behaviors impact demand and the projected implications. The paper suggests revising conceptual financial considerations to assess whether stakeholders in the commercial U.S. air travel industry should attempt to recoup lost passengers who avoid flying out of fear. Classification JEL: D40; L91; L93; R41; R10.

Suggested Citation

  • Gary L. Thompson & Annette E. Craven, 2017. "Lost opportunity: Fear of flying, airline profits, and the economy," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 5(1), pages 41-50, February.
    • Handle: RePEc:lrc:lareco:v:5:y:2017:i:1:p:41-50
    as

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    File URL: http://www.journalofeconomics.org/index.php/site/article/view/278/312
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    References listed on IDEAS

    as
    1. Peter P. Belobaba, 1987. "Survey Paper---Airline Yield Management An Overview of Seat Inventory Control," Transportation Science, INFORMS, vol. 21(2), pages 63-73, May.
    2. Borenstein, Severin & Zimmerman, Martin B, 1988. "Market Incentives for Safe Commercial Airline Operation," American Economic Review, American Economic Association, vol. 78(5), pages 913-935, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Airline finance; Travel demand.;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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