Question: "A January 1, 2009, news report on msn.com included the following sentence: "A report put out by brokerage house CLSA about Jet Airways said that the fall in ATF (fuel) prices has brought down the load factors (flight occupancy) required for the airline to break even from 78 percent to 63 percent." What important assumptions and limitations should be considered when using this piece of information? (The load factor is the percentage of available seats on a flight that are occupied.) "

Person who answer: "The primary limitation in this statement is the assumption that the drop in fuel prices is the only factor affecting the breakeven point for Jet Airways. While fuel is a key variable cost in the airline industry, the operating leverage of Jet Airways currently reported on 4-Traders.com indicates that the firm's operating leverage is relatively high compared to other leading airlines ("Financials, Earnings and Estimates," 2018). Thus, the variable cost of fuel does not impact Jet Airways' break even as much as it might for a company with lower operating leverage (Lanen, Anderson, and Maher, p. 92). The statement also takes a very short term view of the effect of fuel prices. Fuel comprises an average of 30% of the costs of a legacy airline, but between 2015-2016 alone, the cost of fuel varied by 37.8% ("Airline Economic Analysis," 2015-16). While the lower cost of fuel is lowering the breakeven point at the moment, that is by no means a stable statement. Fluctuations in fuel price can have a massive impact on operating margin as a result."

Do you agree? what questions or opinions do you have regarding the person's answer? Must be 4-5 sentences.