DOI: https://doi.org/10.36719/2789-6919/57/113-116
Murad Manafli
Vistula University
https://orcid.org/0009-0007-6620-4961
manaflimurad9@gmail.com
Analyzing the Interplay Between Tourism Demand and Airline Profitability: A Dynamic Panel GMM Approach
Abstract
This study explores the dynamic relationship between tourism demand and airline profitability using a Dynamic Panel Generalized Method of Moments (GMM) approach. Tourism demand is influenced by macroeconomic and socio-political factors, while airline profitability depends on pricing strategies, cost structures, and market competition. The inclusion of lagged variables allows the model to capture persistence effects and long-term interactions between the sectors. The findings reveal that tourism demand significantly enhances airline profitability, whereas rising operational costs reduce financial performance. The study provides practical implications for policymakers and airline managers by emphasizing coordinated strategies between tourism development and aviation sectors.
Keywords: Tourism demand, Airline profitability, Dynamic panel GMM, Revenue management, Aviation economics, Econometric modeling