• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

EasyJet reports demand still strong

Extracts from this document...


Coursework 1 EasyJet reports demand still strong This year, oil prices is affecting negatively EasyJet and other airlines, since they cannot make a profit if the oil price stays at current levels. Strong demand is the only positive side of the unprecedent rise in costs due to the high prices of oil, $140 a barrel, which could lead to a loss of nearly 6$ billion this year. Those airlines which will be in the market this summer will have a very high revenue and costs because of the rise of petrol, which will lead to a very low profit. In September, when the peak summer season has finished, the revenue will dicrease drastically, as a result, the profit will turn negative. ...read more.


The quantity demanded in the summer season increased because of the vacations and the high demand in trips over the world. This won't help as much as the airline might think, as EasyJet's director of communications, Toby Nicol, said: "Those airlines which are in the market this summer will have another good few months in terms of revenue, but it will not be enough to cover the costs," The demand in quantity increase because of the summer season can be seen in the following graph: In this graph, we can see how the demand affect the price of the service. As the demand for the service increases, the price and the quantity supplied increases as well. In this case, the price increased won't be enought to cover the high costs. ...read more.


This method will lower their costs in a huge way, taking into account the thousands of flights that the company has each month. Also as they lower their costs, they woun't need to increase their prices to cover the costs, as a result EasyJet will have a higher demand because of low prices, and will continue growing. In conclusion throughout this analysis I understood the importance of having low costs in a company, and the difficult problems that most airlines are having with oil. Also I realise that the summer seasons are very helpful for airlines, but now a days, even high revenues in summer vacations can't afford extremely high costs of companies, which are centralized in oil. EasyJet has found a little solution to this problem, which consists in lowering by a low percent the airplanes velocity, so that costs care lowered. ?? ?? ?? ?? Alexandre Malisani Page 1 of 3 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. English for business

    Event management is important: organizing gatherings, conferences, seminars, training courses. 14. Networking for success is a way to meet new people, exchange information and get new business. 15. Master the media and you may get rewards by being attentive to the interviews.

  2. Business Studies

    promoting/enforcing - Equal employment opportunity > Process of ensuring that female employees in a workplace are treated with fairness/equality in all operations > Legislated under: equal opportunities for women in the workplace act 1999 > Organisations that are subject to the act must submit a report yearly - Unfair dismissal

  1. Ann Hopkins Case Analysis

    He further advised her to use less profanity and to alter her voice tone, to "look more toward appearing more feminine," to wear more jewelry and make-up, to style her hair, and to dress less in "power blues" (31). Thomas Beyer also suggested that she stop smoking, not drink beer at lunch, and not carry a briefcase."

  2. How can Nandos increase its Productivity?

    For example one group of people may only have a two course meal and another group of people may have a three course meal. Average spend per customer is allows the business to see whether they get a lot of customers.

  1. Business Studies Edexcel Coursework

    With the criteria being people who drive cars and are situated/work in/are visiting the general area of Harrow, we can narrow down the aforementioned available media and pick out those relevant to Errol. Below is a list of each media I surmise is ideal for Errol.

  2. Business communications

    They are used for keeping a permanent record of the message also the reader can study the message over and over again and copies can be made.1.5 Verbal communication is an advantages because it can be given quickly and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work