A.

HIGHER OPERATING EXPENSES

B. MOST PROFITABLE AREA

C. ADDING A CHICAGO TO ATLANTA ROUTE

A. HIGHER OPERATING EXPENSES
1. Fuel cost per miles adds to expenses.
2. Annual depreciation has also increased .
3. Number of passengers to China reduced.
4. The average ticket price per flight reduced.
5. Total revenue of 4 flights reduced in accounting year
2013-14.
B.MOST PROFITABLE AREA

1. Total revenue of 6 flights were increased in this

accounting year.
2. The average ticket price of Chicago flight increased
resulting into increase in average total revenue.
3. Number of passengers to Chicago increased resulting
to an increase in total revenue of that flight.
C. ADDING CHICAGO TO ATLANTA ROUTE
1. Adding Chicago to Atlanta route will effect in cost
effectiveness.
2. It will be a measure to minimize the cost of fuel per
flight in other routes.
3. Hence the Chicago flight is more profitable, a change
in route will improve the present situation resulting
to cost effectiveness.
REVENUE OF EACH FLIGHT
REVENUE
1200000

1000000

800000

600000
REVENUE

400000

200000

0
FLIGHT2021 FLIGHT2022 FLIGHT2023 FLIGHT2024 FLIGHT2025
NO OF FLIGHTS FLYING TO CHICAGO
NUMBER OF FLIGHTS
14

12

10

NUMBER OF FLIGHTS
6

0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
PASSENGERS IN FLIGHTS
PASSENGERS FLIGHT2021
FLIGHT2022
FLIGHT2023
140 123 FLIGHT2024
FLIGHT2025
100
160

200 FLIGHT PASSENGERS

FLIGHT2021 123
FLIGHT2022 100
FLIGHT2023 200
FLIGHT2024 160
FLIGHT2025 140