The airline industry is an unprofitable business, even with traffic increasing every year (HUTCHINSON, 2011). Identifying the macro-environmental factors that may impact the airline will enable airlines to make better decisions and exploit or reduce the impact of these macro forces.DemographicsThe demographic environment includes the study human populations in terms of size, density, location and other statistical information (allbusiness, nd). Airlines are shifting to airports located in cities or high-density populations. Airlines must serve airports and markets where they can generate sustainable levels of traffic and yield (IATA, 2013). This is particularly true as the air transport sector is already very competitive and coupled with competition that results in lower prices for customers; the need to operate at an airport with crucial revenue potential for airlines. Population density is one of the factors that influence the choice of airport for airlines. Southwest is a low-cost airline that serves dense markets over short distances, point-to-point, with frequent service (Dresner, Lin, and Wi, 1996). One strategy that low-cost countries can adopt when expanding is to seek out high-density, high-GDP markets and exploit latent demand from the middle class. Ryanair has been successful in pursuing markets with high density and high GDP (Ryanair, nd). Ryanair's strategy is to attract latent demand for additional flights specific to the middle class, which is particularly concentrated in high GDP areas, as these people are more willing to spend money on leisure travel, while while remaining price conscious (Malighetti, Paleari and Redondi, 2009). The decision to serve a market is crucial for airlines because it has fixed costs that fall in the middle of paper fares, which in turn affects their profits. The other four marco forces can be exploited to the advantage of the LCC. Technology is the best option for LCC to expand its business as it is low cost and aligns with the LCC model. Deregulation in other markets presents an opportunity for low-cost carriers to expand into other regions and exploit latent market potential. Most industries have a direct and proportional relationship with the economy; however, LCCs have an inversely proportional relationship with the economy and can take advantage of the economic downturn to improve their financial situation. Last but not least, the demographic factor dictates the market that LCCs should target and, if done correctly, will provide a steady stream of revenue. Overall, macro-environmental factors cannot be ignored as they could pose an opportunity or threat to the airline..