Seasonality in air transportation demand

Abstract

This thesis investigates the seasonality of demand in air transportation. It presents three methods for computing seasonal indices. One of these methods, the Periodic Average Method, is selected as the most appropriate for the limited sample of data supplied by Delta Air Lines. These indices are used to determine the existence of significant differences between the seasonality of demand between directions of a markets as well as differences among markets. Finally, using the results from this assessment the markets are categorized into four categories: Vacation - Low Business, Low Vacation - Strong Business, Busines & Vacation, and Distict Markets. The markets in each category can be represented by a set of seasonal indices. The overall conclusion is that the seasonality does not differ by direction in a market but it differs by market category