• If all airlines on a wide set of routes increase travel
prices by roughly similar amounts (e.g. due to the
imposition of new market-wide taxes or to the working
through of higher fuel or security costs) then the
decrease in traffic may be less or much less than
proportional to the increase in fares. National or
Supra-National increases in airline travel prices, that
take place across a broad range of markets, are price
inelastic