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JEtBlue Airways (1)

Published on December 2016 | Categories: Documents | Downloads: 8 | Comments: 0
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AIRLINE INDUSTRY SUMMARY
Overall Industry Revenue Growth
• Rising global household income and lower ticket prices
• Airline industry growth ofrevenue passenger miles for regional airlines
are expected to increase at an annualized rate of 2.0%, while revenue per
passenger mile for regional and mainline carriers is also expected to
increase at an annualized rate of 2.7% during the period. 1.6% annually
through 2020
• Increase in load factor of aircraft
• Efficiently filling empty seats
• Yield Management Software
• Higher demand of air travel
• revenue passenger miles for regional airlines are expected to increase at
an annualized rate of 2.0%
Performance
Highlights

New Accounting
Standard

Management
Judgment

Recommendatio
ns

AIRLINE INDUSTRY SUMMARY
Profitability and Consolidation
Profit Margin Growth Factors:
• Additional Fees and Charges offsetting oil price volatility
• Technological developments
• Future Investments
Slight Decline in Number of Enterprises:
• High barriers of entry and growing consolidation
• Increase in competition will cause downsizing
• Number of enterprises will slightly decline at 0.6% annually

Performance
Highlights

New Accounting
Standard

Management
Judgment

Recommendatio
ns

AIRLINE INDUSTRY SUMMARY
Future Trends
• Volatile Fuel Costs
• Cutting routes to control costs and focus on operations
• Charge additional fees for baggage and extra services
• Industry Employees
• Overall growth of annual rate of 0.4% to 383,586 employees
• Man power needed for security, safety checks, repair, and service
• Exposure to automation
• Aircrew, engineers, customer service representatives, pilots
• Cheaper ticket options, less personal service and meal options.
• Minor threat to flight attendants
Performance
Highlights

New Accounting
Standard

Management
Judgment

Recommendatio
ns

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