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Airline Operating Costs and Airline Airline Operating Costs and Airline

Airline Operating Costs and Airline - PowerPoint Presentation

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Uploaded On 2018-12-17

Airline Operating Costs and Airline - PPT Presentation

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

expenses operating www fuel operating expenses fuel www http frontierairlines increase chart total prices aircraft airline rpm asm airlines

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Presentation Transcript

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