A single yield indicator is not an objective measure of profitability because this concept determines how much a fair set fee is per kilometer or mile of flight. Accordingly, if there are always few passengers and prices are high, the yield will be high, and the profit will be low. Conversely, a low cost per flight distance can increase profitability through high demand. In this case, a low yield will indicate a higher yield.
Profit is calculated by subtracting the cost of the item from the net sales. This suggests that airlines may try to make their tickets as affordable as possible to increase profits. Potential repercussions could be negative customer reviews, as a significant amount of comfort would have to be traded off to reduce costs. The following strategy could be to switch the company to aircraft with lower fuel consumption, which will reduce costs a little at the expense of comfort. The disadvantage of this approach is that the organization will have to lease or purchase new aircraft, which requires investment. Another way to increase profitability is to offer special promotions for regular customers. In this way, organizations will be able to attract the same people and retain new customers. The disadvantage of this strategy may be the cost of it if few people are interested in the action. One effective method of increasing profitability is to increase the margin. Thus, the company will be able to increase profitability continuously. In addition, a practical option can be the constant attraction of new customers to use the services actively.
One of the agreements was concluded with Canada, and it was concluded to lift the restrictions on flights three times a week. The first positive aspect of such contracts may be that due to greater demand, profitability indicators can increase significantly, which will positively affect the further development of the organization. The second aspect is that thanks to such agreements, Emirates Airlines is successfully expanding its network, which is also a positive factor. This will allow the organization to enter new markets that will increase profitability. The third aspect is the contracts in the field of investment that led to significant losses. This aspect is negative but did not bring significant losses to the organization. The fourth aspect relates to the expansion of the Flydubai-Emirates partnership, which has positive results for passengers who can easily access flights from any city.