Growth of American Air lines in 25 years

 
Growth of American Air lines in 25 years

 

Airline and road the airline is very important as air travelers since 1990 first got hold of flights in big way which was became a huge publicity for the airline. The major change in air travel started due to introduction of an internet. This change made travel cheaper and cheaper at the same time introduction of new technologies changed the air travel industry so fast.

The massive volume of air travel made the company get bigger which was a challenge as the market really big. According to the press, the largest airline in USA was the United Airlines while they got the lowest profit in the industry as they struggle to control over their other airline like Delta Airlines. The company tried many cases to offer air fare, but all that are totally unsuccessful. On the other hand, for this reason, the company try to solve their crisis by the way to enhance the traditional processes which they follow like change to top management with aviation experience. Hence, the company needs to get on with the new industry.

The logistics organization

The logistics company

The company has been following this kind of business strategy in terms of operating revenues. In the early 1980s, the airline company based its success with zero expenses. In this section, we will discuss about company revenue for the last 25 years. The income will be used to see the impact of the company’s management system.

Company revenue for last 25 years

This presentation shows a visual representation of what is happening in the accounting department. The company is profiting as the company is earning a yearly operating income and therefore, total revenue is becoming the after tax expenditure. In order to see the impact of external factors on financial result, company is analysing first trend of operating income and then find out the changes on it. Thus, this department will take a decision on managing their company business if there is any change in profit and loss on the operating income. The main aspect of the revenue analysis is related to total revenue but the other thing is the profit and loss of business. It can be observed that company are mainly getting profit due to making it profitable. On the other hand, the corporate level returns is not positive and a company need to allocate sufficient part of their revenue back into their business to sustain them.

The management of United Airlines took a lot of revenue wise strategy since 1990 when the company got the biggest revenues every year. Thus, they focused all their attention on developing the particular strategies like: Commercial Airline (in making it profitable), One World etc. Thus, the company has made the list of the most profitable airlines in the recent years where the company is planning to establish itself to be successful. This company has created the airline industry in the last two decades where the US companies are the largest airline in the world. This shows how the company has done business successfully and managed to become the first position of global airline. This management should take the decision for maintaining the positions of the company making the airline industry highly competitive.

Holidays as the valuable customers

The consumers require immediate attention on the products and services to create great pressure on the business leader. Due to this reason, and presence of holiday season in its season of peak period in the year is a concern which the company need to be taking as the monthly revenues shows that the company has to make the price of their tickets more affordable if to emerge as a festive selling ticket. During the festive season the airline company offer a wide range of gifts and services for their customers which drives the customers for higher numbers.

Although the business is presenting great financial profit every year, there are some serious hindrance in making sure this business profitable where the top management are not focusing a very big portion of their revenue back into their business. Thus, a company is planning to provide more top flight services which are cheaper at the same time they are non profitable as they will make more profits every year. Hence, the company needs to consider every options to resolve the situation.