A Comparative Analysis of Passenger Demand for Two Airport Hubs in the United States

Abstract

This paper studies the passenger demand for two airport hubs in the United States using econometric time-series modeling. By focusing on the traditional determinants of demand (national income and price), this paper compares the econometric dynamics of passenger demand for a large and a small airport hub. We found that there is a sustained relationship between income, price, and revenue passenger miles over time. We also found that a shock in GDP causes a disruption that has a lasting impact on passenger demand.

Keywords

• airport
• demand forecasting
• impulse-response analysis for air passenger demand
• airport hubs