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Common-sized income statements Southwest Airlines Co. (LUV) provides passenger services throughout the United States, Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The following

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Common-sized income statements Southwest Airlines Co. (LUV) provides passenger services throughout the United States, Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The following operating data (in millions) were adapted from recent financial statements of Southwest. Year 1 Year 2 Revenue $ 20,425 $ 21,171 Operating expenses: Fuel $ (3,647) $(3,940) Aircraft related (3,706) (3,709) Selling and general (6,798) (7,319) Other expenses (2,514) (2,688) Total operating expenses $(16,665) $(17,656) Operating income $ 3,760 $ 3,515 1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place. Southwest Airlines Co. Common-Sized Income Statement For Years 1 and 2 Year 1 Year 2 Increase (Decrease) Revenue % % % Operating expenses: Fuel % % % % Aircraft related Selling and general Other expenses Total operating expenses % % % % % % Operating income % % 2. What is the primary cause of the decrease in operating income in Year 2

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