A review of the existing literature of previous studies on air
travel price elasticities shows a number of consistent themes.
All of the studies reviewed, spanning a period of over 25
years, found that there was a significant demand response
to changes in air travel prices. The consistency of this result
strongly indicates that any policy action that results in higher
prices (e.g. passenger taxes, increased landing fees) will
result in a decline in demand. However, critically, the extent
of that decline will depend on a number of factors: