Question: Jet fuel is the largest operating cost for Delta Air Lines. In 2015, Delta's CEO Richard Anderson announced that the firm was likely to save
Jet fuel is the largest operating cost for Delta Air Lines. In 2015, Delta's CEO Richard Anderson announced that the firm was likely to save more than $2 billion during the year because of lower fuel prices. Are firms like airlines that have costs that are dependent on raw material prices likely to be more or less affected by the business cycle than firms like automobile companies whose costs are not as dependent on raw material prices? Briefly explain.
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