Question 3
The following table provides some operating statistics of
Southwest Airlines from its 2019 and 2020 annual reports.
Year ended
December 31, 2020
Year ended
December 31, 2019
Available seat miles (ASMs) (in millions)
103,456
157,254
Fuel price per gallon ($)
1.45
2.09
Fuel cost per ASM (cents)
1.78
2.76
Fuel consumed (in million gallons)
1,273
2,077
Active fulltime equivalent employees
56,537
60,767
Number of aircraft
718
747
Average seats per flight
153.1
150.9
(a) The COVID-19 pandemic substantially affected air transport
in 2020. Please discuss how the Southwest Airlines' labor,
fuel and aircraft productivities were affected by COVID-19
by comparing its performance in 2020 and 2019.
(3 points)
Answer:
(b) Comparing with 2019, the fuel cost per ASM was reduced by
35.5% in 2020. Please provide the possible explain.
Answer:
(2 points)
(c) Please provide possible reasons for Southwest's change in
aircraft productivity and fuel productivity after the COVID-
19 outbreak.
Answer:
(2 points)