Airline Stock Market

1425 Words 6 Pages
The financial world runs in a circle, if one industry has a downfall, it will impact the ones it relates to, becoming a chain like a domino. These aspects are very crucial not only to the industry itself but to the stock markets also. Stock markets are a financial way for an individual to understand how one specific industry is performing on the market. For instance, if a stock on the market has excessively increased over the few months, one can relate that this specific industry is gaining a sufficient amount of revenue, where the shareholders are happy and everyone is one on the edge of trying to buy a stock. However, when the stocks are insufficiently decreasing, due to an unknown or known reason, everyone who has a hold of their stock tries to desperately sell their stock to decrease their …show more content…
In order to make a sufficient profit, a plane must make a trip when it's fully loaded with travelers and with no empty seats left. However, this was a great hardship for the airline when the recession hit. With very few travelers on board, they were losing a substantial amount of money. This was a great debacle for the airlines that were bigger and those that dominated the airline industry. For example, Delta and Southwest had to find new ways to comply with this tragedy. One way they intended on staying on track was by changing their route strategies, also known as the “The Hub and Spoke System”. “The Hub and Spoke System” is a model used by the airlines to be more efficient. A hub is a central airport that flights are routed through and the spokes are the routes that planes take out of the hub airport. Most major airlines have multiple hubs because they claim that hubs allow them to offer more flights for passengers, in a sense that following this model, passengers will receive more options for their flights than just having a few restricted ones. This method was exclaimed to be an efficient route model that significantly reduced the number of routes airplanes had to

Related Documents