According to Cathay Pacific Cargo (2012), the inception of operations of Cathay Pacific Airways Limited began on 24 September 1946 in Hong Kong. Cathay Pacific's market structure is oligopolistic. Oligopoly is a market structure in which only a few sellers provide similar services in a particular country (Mankiw, Goh, Ong, Yen, Cheng, Mustafa & Lee, 2012). Air services available in Hong Kong are Cathay Pacific, Air Hong Kong, Hong Kong Express Airways, Metrojet, Oasis Hong Kong Airlines, Dragon Airlines, Waterfront Air, Heliservices and Hong Kong Airlines (Cathay Pacific, n.d.). a significant effect on the carrier's operating results, as fuel represents the group's single largest cost. Cristopher Pratt, president of Cathay Pacific Airways, said Cathay Pacific's core business went into the red in the first half of the year due to relentlessly high fuel prices, the global economic downturn and weak air cargo demand (Cathay Pacific blames fuel costs, 2012) . General Manager of Air Cargo Management Group, Seattle, and the first problem for the air cargo industry is the ever-increasing price of fuel and fuel now symbolizes a larger percentage of total operating costs, Cathay Pacific increases by approximately 39% (Cathay Pacific Profit 2013, 2014). Operating costs include both fixed costs and variable costs. Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary depending on the quantity of product produced (Mankiw et al, 2012). This reduces the profit it will get from airline services (Cathay Pacific, 2013). Vice President, Global Air Cargo Services for UPS Supply Chain Solutions: “Every air cargo provider has introduced some paper, but they save some of it. Additionally, the Group reported profit of $2,620 million HK$ in 2013. However, due to the high price of jet fuel, the profit shares of non-airline subsidiaries and related companies decrease by 30% from HK$1,126 million to HK$781 million (Cathay Pacific Airways Limited , 2013 ).Cathay Pacific Airways Limited (2011) stated that 5% increase in aviation fuel price increases profit and vice versa.Therefore, it is concluded that the Group's gross profit is part of the aggregate income and that depreciation of aircraft is counted as part of gross income and GDP. Parkin (2008) stated that in the circular flow of income and spending, investment and saving interact with income and consumption spending Group will reach equilibrium if the rate of injections equals the rate of withdrawals in a circular flow.