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Management Sciences and Quantitative Methods
Embry-Riddle Aeronautical University
International Journal of Aviation, Aeronautics, and Aerospace
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Predicting The U.S. Airline Operating Profitability Using Machine Learning Algorithms, Woojin Choi, Mary B. O’Connor, Dothang Truong
Predicting The U.S. Airline Operating Profitability Using Machine Learning Algorithms, Woojin Choi, Mary B. O’Connor, Dothang Truong
International Journal of Aviation, Aeronautics, and Aerospace
With the increasing competition and cost pressures, the U.S. airline industry has explored methods to reduce operating costs and diversify revenue sources for improving financial performance. Understanding the influence of operating revenues and expenses on airline profitability is imperative for the long term growth of the airlines and continued generation of profits.
This study examined the cost and revenue data of the U.S. major airlines from the Department of Transportation’s Bureau of Transportation Statistics Form 41 reports between 2009 and 2018. Using SAS Enterprise Miner software, researchers used variables representing revenue and expenses from these data to develop and test …