Profit/loss analysis of year 200o-2012 of Delta airways and U.S. airways
In 2000, Delta airways made a profit of $ 1,459,357. In 2001, they made subsequent loses because of the effect of the 9/11 September attack. Because of the fear of terrorism and the fear of passengers getting bombed, many clients freaked from using air transportation. This is the same reason that also led to losses been incurred in 2001 by U.S airways. Delta airways recorded subsequent loses from 2002 to 2005 because of the issues of bankruptcy and failure to have money to conduct some of its operations plus also the fear of terrorism fuelled the bad business in the industry.
This is the same in what happened in U.S airways. Delta airways recovered to make profits in 2006 to 2008 since it had started receiving bankruptcy protection plus there was less worry on the air regarding terrorism after the war to fight terrorism began. U.S airway recorded profits in 2006 and 2007 since it had a change on consumers’ perspective regarding air travel after terrorism levels were curbed.
In 2008, U.S airways recorded a major loss due to the effect of the global economic crisis that resulted in weaker economies and less purchasing power of the consumers. In subsequent year, it managed to make profits simply by having better management systems and also due to a change in the global financial crisis condition. Delta airways in 2009 made loses due to the effect of the global economic crisis. As the global economic crisis was controlled, it managed to make profits from 2010 to 2012.
Works Cited
"Operating Profit/Loss ." 30 December 2012. TranStats. 25 February 2013 <http://www.transtats.bts.gov/Data_Elements_Financial.aspx?Data=6>.
