productivity. [25] 2018 A levels Essay 2 Competition amongst airlines within the air passenger market is high and demand is rising but many airports are at or near capacity. Both variable and fixed costs of production of passenger airlines continue to change over time. For example, airline jet fuel prices fell by 20.4% over the year ended 22 July 2016 while the price of passenger jet aircraft increased by around 1.1% between 2015 and 2016. Using economic analysis, discuss how airlines would likely respond to these changes. [25]