Airline s Total Revenue Growth Essay - 1815 Words

A. Total Revenue growth Figure 2 Lufthansa’s Total Revenue Comparing with Its Major Competitors Source: Amadeus In 2010, Lufthansa saw a 20 percent growth in revenue. This indicates that it had recovered from the financial crisis. However, the next two years the growth rate slowed down, mainly due to the soaring price of fuel. Sales growth in 2013 declined slightly by 0.4 percent despite Lufthansa’s all business segments made a profit. The reason is that the company launched a restructuring program so that there were lots of one-way renewal expenses (Lufthansa Group, 2013). In the following year, Lufthansa was surrounded by intense competition and internal strikes, thus the sales staggered. Lufthansa had the highest growth rate in 2010 but the rate keep declining over the period shown. Thus in 2016 Lufthansa lagged behind its competitors, with a sales growth only better than Air France. The SCORE and 7 to 1 strategy implemented in 2012 and 2014 seem to improve the company’s performance but still not enough to catch its competitor’s pace. B. EBITDA margin Figure 3 Lufthansa’s EBITDA Margin Comparing with Its Major Competitors Source: Capital IQ The four airlines’ EBITDA margin fluctuates from 2010 to 2016 but overall they all have higher profitability than past years. In comparison with its major competitors, Lufthansa have a more flattening curve. In 2016, Lufthansa’s EBITDA was the third place out of the four companies. As a big company with solid financialShow MoreRelatedRyanair Revenues1139 Words   |  5 PagesRYANAIR CASE: REVENUES ANALYSIS 1 According to the Profit Loss accounts of Ryanair, the operating revenues are splitted into two categories: the scheduled revenues and the ancillary revenues. The scheduled revenues are generated through direct sales of flight tickets while the ancillary revenues1 are generated from other non-ticket sales. 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