Solution-Compute the passenger revenue per seat mile flown

Compute the passenger revenue per seat mile flown

Reference no: EM132707160

Problem - Southwest Airlines Co. (LUV) reported the following data (in millions) for a recent year.

	Year 3	Year 2	Year 1
Available seat miles	140,501	131,004	130,344
Passenger miles flown	117,500	108,035	104,348
Revenue	$18,299	$17,658	$16,721

Southwest refers to its utilization rates as "passenger load factor."

Required -

1. Compute the passenger load factor (utilization rate) for each year.

2. Compute the passenger revenue per seat mile flown. Express in cents rounded to one decimal place.

3. Comment on (1) and (2).

Reference no: EM132707160

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Compute the passenger revenue per seat mile flown

Reference no: EM132707160

Reference no: EM132707160

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