Productivity Frontier Airlines Danielle Hettmann SYST461 Homework Assignment Chart 1 ASMs RPMs and Load Factor Overall upward trend Load Factor and RPM have similar behavior ASM has transient behavior but is also apparent in RPM and Load Factor ID: 742846
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Slide1
Airline Operating Costs and Airline Productivity: Frontier Airlines
Danielle Hettmann
SYST461 Homework AssignmentSlide2
Chart 1: ASMs, RPMs, and Load Factor
Overall upward trend
Load Factor and RPM have similar behavior
ASM has transient behavior but is also apparent in RPM and Load FactorSlide3
Chart 2: Income Before Taxes, Total Operating Expenses, Total Operating Revenue
Total Operating Expenses and Income Before Taxes are inversely related
Total Operating Revenues and Total Operating Expenses have high correlationSlide4
Chart 3: RASM, CASM, Yield per RPM, PRASM
Strong outliers in 2009-Q2 for RASM and CASM
Very steady behavior in Yield per RPM and PRASMSlide5
Chart 4: Operating Expenses
Overall, operating expenses are increasing
Spike in aircraft fuel operating expenses does not imply a spike in non-fuel operating expensesSlide6
Chart 5: Operating Expenses
Correlation between increase in jet fuel price and aircraft fuel operating expenses per ASM
Non-fuel operating expenses are fairly constant per ASM but large changes can be attributed to large fluctuations in fuel prices and market responseSlide7
Analysis of Fuel Prices
Effect on Expenses: Increase in fuel prices drives up operating expenses for airlines, causing the cost for ASM to increase
Effect on Airline Finance: Increase in fuel prices reduces the profit for airlines due to an increase in operating costs
Effect on Airline Network Structure: Increase in fuel prices causes yield to rise, meaning less aircraft flying but more people flying on each aircraftSlide8
Sources
1:
http://www.frontierairlines.com/who-we-are/company-info/our-fleet
2:
http://www.frontierairlines.com/plan-book/routes-schedules/route-map
3:
http://www.afafrontier.org/?zone=/unionactive/view_page.cfm&page=About20AFA2DCWA
4:
http://www.frontierairlines.com/flight-info/seating-options
5:
http://www.frontierairlines.com/plan-book/fare-options
6:
http://www.frontierairlines.com/Home/flight-info
7:
http://www.frontierairlines.com/frequent-flyers/how-it-works