Economic Forecast

There is little argument that airline industry is as unattractive a sector as it gets. The American airline industry has oscillated around zero profit since 1978 with an average profit cycle of 11.3 years. However, Southwest Airlines has been in the black for 38 consecutive years. This was achieved through the managements understanding its own operational economics and global economic trends leading to three key factors. Southwest uses only one type of aircraft saving millions in spare part inventory; it employs 30% less employees per aircraft compared to other airlines; and it is an expert at fuel hedging paying a dollar less per gallon than its competitors on fuel.
In today’s business landscape, economy has become an integrated and inter-connected phenomenon with large butterfly effect on every business. We produce timely and precise economic information for your particular business to minimize the influence of butterfly wing flaps on your business: