Analysis Of Hk Airlines’ Profit Strategy Under International Oil Price Fluctuations

Air transportation is fast,remote,comfortable and safe.It has irreplaceable advantages in modern transportation systems and plays a pivotal role in political,economic,cultural and social construction.Relative to the foreign civil aviation market environment,there are still many shortcomings in China’s private aviation enterprises in infrastructure construction,policy support,and consumption concept guidance.Coupled with the late start of private airlines and the large market share of state-owned aviation companies,China has caused many shortcomings.The development of private air transport companies has been severely hindered in recent years.It is understood that fuel costs are one of the most important costs for private airlines.In the 1990s,the low-cost profit model promoted by Southwest Airlines was popularized by airlines around the world and achieved great success.China’s low-cost aviation is still in a new stage of development.As of 2018,there are more than ten low-cost airlines in China,and their market share is still small.Implementing a low-cost strategy is an effective choice for private airlines to fight against indecision giants and new airlines.At present,international oil prices fluctuate violently.Can low-cost strategies be used to effectively avoid airlines’ oil price risks and allow low-cost strategies to be used in private aviation The promotion is still questionable.The dissertation first summarizes the research status of profitability and oil price fluctuations by domestic and foreign scholars,and determines the research framework and methods.In the theoretical overview section,the crude oil pricing mechanism and the reasons for oil price fluctuations are introduced.Relationship of airline profitability.Secondly,it introduces case companies.Based on the development status of China ’s private air transport industry,it conducts a comparative study of HK aviation at both the corporate and industry levels,and analyzes the implementation effect of its profit strategy.Then select the quarterly data from 2014 to 2018,and determine the comprehensive factor of the profitability of aviation companies through principal component analysis.Through the stability test,co-integration test,and vector autoregressive model（VAR）,the international oil price has been studied to HK aviation profitability The results show that there is a long-term equilibrium relationship between international oil prices and the growth profitability and general profitability of HK Airlines.International oil prices have a positive impact on general profitability and a negative impact on growth profitability.And there is no lag effect for this effect on the seasonal scale.Finally,based on the research results,the profit strategy of HK Airlines is elaborated and analyzed,and corresponding improvement measures are proposed for its shortcomings.These measures have certain reference value for aviation companies to improve their profitability under the risk of oil price fluctuations.