Discussion Coursework Example | Topics and Well Written Essays - 250 words - 35

Discussion - Coursework Example According to statistics that were produced by International Air Transport Association, the demand for global travel decreased with a percentage of 3.5 in 2009. This according to the department was the largest decrease since World War II (Transtats.bts.gov, 2015). Due to decrease in demand, an imbalance developed between demand for air travel and capacity. Capacity could not be reduced as fast as demand declined. Capacity for the domestic travel increased at the start of the recession since new planes that were ordered months before the recession were coming into service despite the deepening in recession. The reduction in demand lowered the prices of domestic air travel. During the first six months of 2008, there was a change in monthly available seats. Available seat miles increased at an average of 6.7% while load factor decreased at an average of 1.5% (Transtats.bts.gov, 2015). This was an indication that there was growth in the number of seats but the demand for the seats had reduced. Reduction in seats lowered the prices of domestic air travel. Price recovery in domestic airline travel began in late 2009. In addition to the imbalances to demand and capacity, there was an increase in jet fuel prices during economic recovery resulting to increased air passenger