Continental Airlines: Growth in Revenue and Sale

Continental Airlines: Growth in Revenue and Sale

  • Submitted By: notnice
  • Date Submitted: 11/20/2010 3:55 PM
  • Category: Business
  • Words: 258
  • Page: 2
  • Views: 355

Introduction
The entity under review is Continental Airlines Inc. This part of the study shall be segmented and discussed under the following topics:-
1. Growth in revenue and sales
2. Comparative situation
3. Profitability
4. Environmental awareness of the firm
5. Competitive landscape

Growth in Revenue and Sale
This and every other topic shall be discussed over a three year time period (2004-2005-2006). For the period under review, Continental Airlines reported increases in total revenues in all years respectively. There was a percentage increase from 2004 to 2005 of 13.22% (percentage increase shall be defined as (old – new/old * 100), and a further increase in 2005 to 2006 of 17.13% {(13,128-11,208/11,208) * 100}. The following table depicts total revenue for the three years.
TOTAL REVENUE
| 2004 | 2005 | 2006 |
| ‘000 | ‘000 | ‘000 |
Total Revenue | 9,899 | 11,208 | 13,128 |

For the three years under review, a positive net income was reported only in 2006, a significant percentage increase of 604.41%.
343,000 - (68,000) * 100
68,000
The first and second years reported net losses of :-

| 2004 | 2005 | 2006 |
Net Income/ loss | (409,000) | (68,000) | 343,000 |

Comparative Situation
This part of the paper relates to the comparative situation of Continental, and shall be discussed in terms of service quality. Service quality of airlines can be discussed in terms of a 1991 development called the Airline Quality Rating (AQR) and by the number of awards that the airline has received, but we shall focus on the former.

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