startup airline

ORD - ATL ROUTE

ANALYSIS
Alejandra Bermúdez 30/07/2021
 Where are we losing the most
money?

AGENDA Where are we most profitable?

Should we add a Chicago to Atlanta

route in order to increase profits?
Where are they losing the most money?

AIRCRAFT
B737 The aircraft B737 has the most expensive fuel cost per mile and the greater number of flights
Where are they losing the most money?
The flights from Chicago to Salt Lake City have

ROUTE CHICAGO - ST LAKE CITY

least expensive ticket Price per mile --> 11 Dollars
per mile . While its cost of fuel per mile is above the
average

Average Ticket Price per mile

400

300

200

100

0
TL

O -JFK

RD SP
O WR

O CA

RD LT
O HL

EA

RD I

RD IA

RD A

RD X
O OS

RD S
O DFW

O CO

O FO
O -IAD

RD W
O EN

RD L
O AX

RD H
LC
W

L
H

O -LA
G

-IA
-M

-F
-A

-C
-M

-S
-L
-B
-S
-D

-P

-P

-S

-D
-B
-L

-M

-D
-E
RD

RD
RD

RD
RD

RD

RD
RD

RD

RD
RD
RD

RD
RD
O
O

O
O
O
O

O
O
 O

0
10.000
20.000
30.000
40.000
RD
-A
O TL
RD
O -JFK
RD
-M
O
ROUTE
RD SP
-E
O WR
RD
-D
O CA
RD
-C
O L
RD T
-P
O HL
RD
-S
O E
RD A
-B
O W
RD I
-M
O
RD IA
-L
O G
RD A
ORLANDO - ATLANTA

-P
O H
RD X
Profit per mile

-B
O OS
RD
O -LA
RD S
-D
Where are they most profitable?

O
RD FW
-M
O CO
RD
-S
O FO
RD
O -IAD
RD
-D
O TW
RD
-D
O EN
RD
-F
O LL
RD
-L
O AX
RD
-IA
O
RD H
-S
LC
ROUTE ANALYIS ORLANDO - ATLANTA

CAGR 2018 -2020 9,04%

AVERAGE GROSS
52,88%
MARGIN 2018 -2020
AVERAGE GROSS
31,73%
MARGIN 2018 -2020
ROUTE SIMULTATION ANALYIS
ORLANDO - ATLANTA

Revenue
Miles per per 10% 135 Passengers
year passanger
196.350 150

40% 150 Passengers

Min Cost Max Cost
Demand
per Mile 30 per Mile 30
30% 175 Passengers

Demand
20% 185 Passengers
ROUTE SIMULTATION ANALYIS
ORLANDO - ATLANTA

9.586.500 20.440 9.566.060 100%

ANNUAL REVENUE ANNUAL COST AVERAGE ANNUAL PROBABILITY OF

PROFIT PROFIT
CONCLUSION
The aircraft B737 has the most expensive fuel cost per
mile and the greater number of flights

The flights from Chicago to Salt Lake City have least

expensive ticket Price per mile --> 11 Dollars per mile .
While its cost of fuel per mile is above the average

There is a great opportunity to invest in the route

Orlando - Atlanta as it has the greater profit per mile
and the simulation analysis estimates an annual profit
of 9.566.060.