Airline Industry Analysis

Running head: AIRLINE FINANCIAL ANALYSIS pecuniary Statement Analysis of Selected Airlines Companies Fernando K. Benavente, Kristine Johnston, Rasjid Reksodiputro, and Jan Axel Tribler Hawaii peaceful University Industry Background The terrorist attacks of folk 11, 2001 brought slightly dramatic changes in the United States (U.S.) air hose down industry both in terms of short-term advantageousness and in standard operating(a) procedures. In spite of the economic outline recovering from recession, the industry reported net profits of $5 trillion in calendar year 1999 and $3 billion in 2000 (Smallen, 2002). These gains would quickly deteriorate in the months following the attacks as a frightened public cancelled trips, resulting in a 2001 net loss of over $10 billion. While the theme government intervened with a $15 billion bail-out package, one-third of which would be received in cash and the balance as guaranteed loans (Corridore, 2002), the losings contin ue to mount as flight paths face increase credentials costs and lagging passenger counts. Investors are watchful about the industry as pecuniaryly strapped companies struggling to stay aimless by reducing the number of flights and value-added services, streamlining operating costs, laying-off thousands of employees, and restructuring debt labor force. some(prenominal) companies deem had to seek loans to meet operational expenses, resulting in the midpoint debt load of the industry surging from $55 billion to $90 billion since 1999, towering nine times over equity. several(prenominal) airlines hand or are on the brink of register unsuccessful person protection. This paper examines the annual financial statements of three companies from the perspective of an investor and employs financial statement analyses as the basis for a recommendation of the close to kindly investment choice. Company Background Continental Airlines Founded in 1934, Continental Airlines (Hawai ian) is the fifth largest U.S. airline, oper! ating in its New York, Houston and Cleveland hubs. Expressjet is Continentals primary subsidiary, rails mostly regional flights. very in depth, good ingestion of research methods also interest comparisions between the three contrary airlines but is very disastrous that their research data or the limitations in regards to Hawaiian Airlines could not have be spy earlier, and it is because of this that makes this abridgment not as accurate and thorough is it could have been. Selecting a different airline would have contirbuted to the validity of this analysis If you want to get a full-of-the-moon essay, order it on our website: OrderCustomPaper.com

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