Problem: Chihi Airways had the following results for the last three years:
2004 2003 2002
(in thousands of dollars)
Operating expenses $1,550,000 $1,520,000 $1,480,000
Operating revenues 1,840,000 1,670,400 1,620,700
Long-term debt 910,000 900,500 895,000
Operating property 995,000 990,000 985,000
Passenger load factor 66.5% 59.0% 57.8%
Required:
a) Calculate the following for 2004, 2003, and 2002:
1) Operating ratio
2) Long-term debt to operating property
3) Operating revenue to operating property
b) Comment on trends found in the ratios computed in (a)
c) Comment on the passenger load factor