What impact do lower fuel cost and other changes have on airlines net income? American Airlines group ( AAL ), the world's biggest Airline, has been reporting record profits in recent quarters. United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record it profits has been the decline in the cost of oil. the price of oil has fallen during 2014; we are spending much less at the gas pump to fill out cars. The airlines are also experiencing the effects of low oil prices; the price of jet fuel is down 18% since August 2014. Increased revenues have also contributed to the high profits in the airline industry. Overall, Airfares are up 3% for 2014. according to airlines for America, an Industry trade group. In addition, planes have been about 85% full in 2014, which is a record high for the airline industry. On the other hand, Airline spent more on fuel in 2014 than in 2010. Airlines also spent more on labor due to higher renegotiated labor contracts. Questions: A. what each of the following changes Increase or Decrease an Airlines net income (consider each item independently)? B. What income statement account would be impacted by each item? 1. The 3% increase in airfare (ticket prices). 2. The 18% decrease in the price of per gallon of jet fuel. 3. The increase in the number of seats sold. 4. The increase in the total spent on Jet fuel. 5. The increase in the cost of Labor contracts. 6. Have you experienced hirer or lower ticket prices over the last 2 years? 7. What are other ways that Airlines use to increase Revenue? 8. What are other causes for decline in the revenue of airlines? What are other factors that increase or decrease expenses of Airlines?