Strategic Revenue Management in Commercial Aviation: Navigating Volatility, Optimizing Yield and Enhancing Sustainability
Authors: Rui Quadros, Alexandra O’Neill, Mariana Marques, João Pedro Martins Teixeira
DOI: 10.37326/ajsev8.12/2065
Page No: 66-76
Abstract
In the highly competitive and structurally complex landscape of commercial aviation, where narrow profit margins and relentless external pressures converge to challenge operational stability, the strategic application of Revenue Management (RM) emerges as a critical mechanism for yield optimization but also as a foundational pillar for long-term sustainability. This study investigates the strategic role of RM within airline operations, emphasizing the intricate interdependencies among forecasting accuracy, dynamic pricing structures and inventory control systems. Drawing upon both contemporary academic literature and sectorial data, the article offers a comprehensive examination of the technological and methodological advancements that have shaped RM practices, while also identifying the systemic limitations that persist, particularly in scenarios of high market volatility. By deconstructing the traditional RM framework and juxtaposing it with adaptive models responsive to demand unpredictability and segmentation complexity, this work advances the theoretical and practical understanding of revenue optimization in commercial aviation. Findings underscore the imperative for airline decision-makers to transcend automation-centric approaches, advocating instead for human-in-the-loop systems capable of integrating quantitative insights with strategic discretion. Ultimately, the study contributes to growing discourse on sustainable profitability in air transport by proposing a refined, resilience-oriented RM paradigm tailored to the evolving dynamics of global air travel.
