Lost opportunity: Fear of flying, airline profits, and the economy

Gary Thompson,Anette E Craven

doi:10.18533/jefs.v5i01.278

Gary Thompson, Anette E Craven

Open Access

https://doi.org/10.18533/jefs.v5i01.278

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Abstract

The purpose of this study is to examine the relationship between fears of flying and U.S. airline load factors to determine if there is a potential impact on corporate profits and the economy. Travelers with a reluctance towards flying represent a potential lost opportunity for airline companies, a source of operating profits, and positive economic impacts. This research examines the psychological reservations towards flying, how avoidance behaviors impact demand and the projected implications. The paper suggests revising conceptual financial considerations to assess whether stakeholders in the commercial U.S. air travel industry should attempt to recoup lost passengers who avoid flying out of fear.

Highlights

Today, commercial air travel is a common mode of transportation with broad economic impacts
This paper examines, with an integrative literature review, whether fear of flying represents a significant amount of lost profit and lost economic opportunity and a comprehensive look at the variables
The Diagnostic and Statistical Manual of Mental Disorders (4th ed., text rev.; DSM-IV-TR; American Psychiatric Association, 2000) provides detailed criteria for a phobia associated with flying known as aviophobia

Summary

Introduction

Commercial air travel is a common mode of transportation with broad economic impacts. Ever since the first paid passenger flight in 1914, airlines have faced difficulties in consistently generating demand, which influences business strategies beyond product or price differentiation (Belobaba, 1987) From those early flights, a complimentary relationship evolved where commercial aviation has a positive effect on the economy (Iatrou, 2014). The Diagnostic and Statistical Manual of Mental Disorders (4th ed., text rev.; DSM-IV-TR; American Psychiatric Association, 2000) provides detailed criteria for a phobia associated with flying known as aviophobia. This diagnosis is a variant of a particular subtype phobia limited to the act of flying. To obtain a more holistic perspective of the impacts of fear of flying this study applies to those clinically diagnosed and includes those not diagnosed who have an admitted aversion to flying associated with fear

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