1. Below is a summary of the operating revenue and operating expense of four major airlines in the US. Please calculate the operating ratios of the following major carriers based on the information provided in the table (sources: corporate 2018 annual 10k reports). Answer questions 1.1-1.3 based on your calculations. (in million) American airline Delta United airline Southwest Operating revenue 44,530 44.438 41,303 21.965 Operating expense 41,807 39.174 38,074 18,759 1.1. What's the operating ratio of American airline in 2018? (please include the calculation formula and round the results to two decimal places) 1.2. Based on your calculation, which of the major carrier has the lowest operating ratio in 2018 and what does that tell you? 1.3. By looking at the operating rations of the major air carriers, we can conclude that the air industry in general is highly profitable? 2. A typical Boeing 757 has 180 seats in total. If 169 passengers are on board for one flight, what will be the loading factor for this flight? Briefly explain the results. 3. Please read the Transportation Statistics Annual Report 2020 carefully (you can find it under the folder of homework, with the file name: TSAR_2020). Read any of the chapter based on your preference and answer the following questions: 3.1. What's your biggest takeaway from this chapter? 3.2. Any potential trends/challenges are faced by the current transportation? 1. Below is a summary of the operating revenue and operating expense of four major airlines in the US. Please calculate the operating ratios of the following major carriers based on the information provided in the table (sources: corporate 2018 annual 10k reports). Answer questions 1.1-1.3 based on your calculations. (in million) American airline Delta United airline Southwest Operating revenue 44,530 44.438 41,303 21.965 Operating expense 41,807 39.174 38,074 18,759 1.1. What's the operating ratio of American airline in 2018? (please include the calculation formula and round the results to two decimal places) 1.2. Based on your calculation, which of the major carrier has the lowest operating ratio in 2018 and what does that tell you? 1.3. By looking at the operating rations of the major air carriers, we can conclude that the air industry in general is highly profitable? 2. A typical Boeing 757 has 180 seats in total. If 169 passengers are on board for one flight, what will be the loading factor for this flight? Briefly explain the results. 3. Please read the Transportation Statistics Annual Report 2020 carefully (you can find it under the folder of homework, with the file name: TSAR_2020). Read any of the chapter based on your preference and answer the following questions: 3.1. What's your biggest takeaway from this chapter? 3.2. Any potential trends/challenges are faced by the current transportation
