Financial and Economic performance of an airline report

This is a paper that is focusing on Financial and Economic performance of an airline. The paper also provides various questions to consider in doing the paper.

Financial and Economic performance of an airline

Guidance for preparing for Assignment 1
You need to organise your report so the Financial and Economic performance of the airline can be explained (analysis of the performance of the airline)
This document is simply a “check-list” to help you navigate through your annual report.
You cannot cover all of these points. This is simply guidance on some information you should try and look for to write your report.
Please refer to the assignment brief for precise instructions. You must also follow the brief.
1.      Firstly, explaining who your airline is
Firstly, current and passed situation
Secondly, passenger numbers (total and historical)
Thirdly, ASKs (total and historical) RPKs?
Fourthly, markets served (traffic per region, share of different regions?)
Lastly, fleet, long-haul and short-haul, average capacity

Average distance flown Base, major airports, serving regional airports mainly?
Point to point or connecting traffic?
Future situation
Fleet plan? Fleet renewal?
New markets to open?
Share of Economy class travellers?
Explaining the environment in which the airline is operating?
A brief PESTEL (and also how it would impact the airline’s Economics and Finance)
Has the airline got any competitors?

2.      Secondly, the cost and revenue performance of the airline: how well is the airline doing
Profit analysis
Firstly, current and past operating profit
Secondly, current and past bottom-line profit (after financial expenses and tax)
Thirdly, is the profitability improving or deteriorating? Can this be explained?

Revenue analysis

Passenger revenue: Level? Share?
Cargo revenue: Level? Share?
Ancillary: Level? Share?
Yield? Increasing? Decreasing? Why?
RASK, Increasing? Decreasing? Why?
CASK?
Average ticket price?
3.      Thirdly, the Debt and assets of the airline
Firstly, is the airline heavily in debt?
Secondly, is the airline able to borrow money?
Thirdly, how is the airline financing its assets?
Debt/equity ratio
Is the airline able to pay its short-term debt?
Current ratio (current assets/current liabilities)
Is there a risk that the airline may go bankrupt?
Conclusion:
Could be a SWOT (from an Economic and also finance perspective)

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