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The airline industry is one of the few where profits actually increase in a recession, but...

The airline industry is one of the few where profits actually increase in a recession, but fall in expansions, because the price of jet fuel rises in expansions and falls in recessions. True or False

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Answer #1

The statement is "True"

The airline industry uses aviation fuel as input which is one of the highest taxed product in the world and its prices are very high. At the time of recession, the oil prices fall down because of the limited demand allowing the Airline industry to make a profit. This recently happened when in the year 2015 onwards the airline industry made a huge profit because of a glut in the oil market. Now those profits are decreasing.  

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