Emirates Airlines Financial Analysis and Benchmarking Approach

Aviation Management
and Logistics

Contents
INTRODUCTION....................................................................................................................... 3
MAIN BODY................................................................................................................................3
Calculate the following ratios.....................................................................................................3
Discuss about Benchmarking approach along with its limitations.............................................5
CONCLUSION............................................................................................................................ 6
REFERENCES.........................................................................................................................7

INTRODUCTION
Financial statements can be defined as a summarized report of position and performance
of the company. It provides a base to the users of this information to check out for the required
data for making their various organizational decisions. It is also useful for organizations to
analyze its asset value, profitability and capabilities. They also compare their own reports with
that of the other competing firms to stand in the market and create a separate space for
themselves. There are number of methods to analyze such as “ratio analysis “which helps in
fulfilling this purpose(Cimarelli, Leonforte and Angeli, 2019). The firm chosen in this report is
“Emirates Airlines “. it is an UAE based business firm in aviation industry. At present it is
operating in nearly eighty countries with around 300 air crafts. The report calculates various
ratios of different airline companies. It further analyzes their performances in comparison to
other firms. It also discusses about the limitations of benchmarking approach and steps involved
in it in context to IATA.
MAIN BODY
Calculate the following ratios
(a) Unit cost (per aircraft capacity) = operating expenses / total number of seat miles
produced
Emirates
2019 = 146
2020 = 141
Singapore Airlines
2019 = 50.5
2020 = 56.8
(b) Yield (per RPK and/or RTK) = Passenger revenue / available seat kilometers
Emirates
2019 = 219
2020 = 222
Singapore Airlines
2019 = 77
2020 = 74.6
Lufthansa
2019 = 26
2020 = 40.2
(c) Load factor = number of passengers / number of seats
Emirates
2019 = 66.8 %
2020 = 67.4 %
Singapore Airlines