Virtually no organization publicizes its break-even point to external parties. Airlines are a notable Case 12.61 exception, but only a handful disclose this key operating statistic. Access the homepages of Contineptal Cost-Volume-Profit Airlines and Comair Holdings, Inc. Continental is a global carrier and one of the largest in the industry. (LO !,2)

COMAIR, on the other hand, is a much smaller entity, operating regional jets and playing a major role Delta Connection’s program at its Cincinnati and Orlando hubs.

Required In small groups, complete the following:

a. Learn more about these two firms by exploring their Web sites.

b. By reviewing key financial and operating statistics disclosed by the carriers, find the break-even load factor—the percentage of seats that must be occupied by paying passengers for the airline to break even. What break-even load factors have these carriers disclosed in recent periods?

c. Explain several underlying factors/characteristics of these carriers that likely cause their breakeven points to differ.