Forecasting Airline Costs with an Inflation Factor

Key Points

• To enhance the accuracy of airline cost forecasts by incorporating an inflation factor into the extrapolation method.
• Improved forecasting method developed for airline costs
• Incorporation of an inflation factor as a variable
• Use of simple extrapolation techniques to align forecasts with actual values
• Forecasts are more aligned with actual airline costs
• Increased accuracy in projected future values
• Dynamic changes reflected in forecasts based on inflation adjustments

Abstract