ASYMMETRIC PRICING AND AIRLINE PERFORMANCE

We study the relation of asymmetric pricing with operating performance and stock returns U.S. airlines. construct two proxies to measure degree pricing: Degree Asymmetry (DOA) Peer-adjusted DOA, then simultaneously test how direction magnitude affect airline performance. find that raising air ticket price, regardless whether fuel cost is increasing or decreasing, associated significantly higher sales growth than reducing price in same scenario. However, above industry peers two-edged: it may increase profit margin, but at a slowdown growth.