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What earnings metric is used to compare profits

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Reference no: EM131949504

Question: Use the following article to answer the questions:

How Much of Your $355 Ticket Is Profit for Airlines? (By Scott McCartney)

1. How profitable are airlines today in comparison to historical performance? In comparison to other industries?

2. What does the author mean when he states that airlines get their profits from fees rather than ticket sales? Is this based on the fact that there is no cost of goods sold as there is for ticket sales? Explain your answer.

3. What earnings metric is used to compare profits across airlines of different sizes?

4. Consider the note to the graphic entitled "Flight Change." How much difference exists in determining this metric across airlines? Do you think the differences hurt this comparison? Explain.

Reference no: EM131949504

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