Research paper on micro and macro economics analysis of british airways. Needs to be 6 pages. Microeconomic Analysis Some of the demand and supply factors that have affected the profitability of British Airways as a company over the years include economic conditions, competition from other airlines, rise and fall in global oil prices, changes in government policy, and employees’ expenses. Economic conditions include one important demand and supply factor that affects the profitability of British Airways. For example, in the first few years of the new millennium, global recession has hit hard the company’s profitability. Generally, global recession means that the world’s economy is shrinking. A bad economy means that many people will not have a lot of money in their accounts to tour the world and in the process, affecting the company’s demand. This in the long run affects the profits of the company. Competition from other airlines is also a factor that affects the British Airways’ profitability. In the new millennium, the emergence of many low-cost airlines has really affected the company’s profitability by reducing the demand.