ABSTRACT
This chapter examines the existing body of knowledge regarding cyclicality, with the aim of identifying potential airline profit cycle causes, drivers, and mitigation measures. It describes theories about the business cycle in the general economy and factors that make some industries more cyclical than others. A search in several popular airline business publications (academic journals and magazines) for the terms 'profit cycle', 'profitability cycle', or 'boom and bust' results in altogether four articles in the last 20 years. A search for aviation/airline management/economics books addressing the airline profit cycle is similarly unsuccessful, revealing only one airline management book specifically on the issue. Several other authors merely describe the airline profit cycle as part of their introduction without giving a deeper analysis of causes and implications. The chapter presents insights about the airline profit cycle from the listed aviation management publications as well as additional aviation management studies derived in a wider search.
