Characteristics The airline industry is high volume sales and low profit margins. It has high fixed costs and highly variable demand, sensitive to economic cycles and external factors. It is a very competitive market, which encourages price wars and expertise through routes, making break to those who have a smart business strategy based on flexibility and efficiency. In fact, the industry has accumulated millions in losses in recent years competing product, but also of the recent terrorist attacks (9 / 11) and the rise in the price of oil. It depends on a demanding logistics and service, so the technology support is key to providing customer service and internal efficiency. Most airlines carry cargo and passengers.