Easyjet Is A British Airline Based At London Luton Airport

1564 WordsFeb 3, 20157 Pages
INTRODUCTION EasyJet is a British airline based at London Luton Airport. Sir Stelios Haji-loannou founded EasyJet in 1995 with the vision of creating a customer-focused brand that would revolutionize the concept of air travel. More than fifteen years on, EasyJet is the Europe’s leading airline and the largest airline in the United Kingdom carrying over 50 million passengers a year and flyting to over 600 routes across 30 countries. EasyJet flies to 44 out of 50 Europe’s largest airports and holds a strong position in key markets such as London Gatwick, Milan and Geneva. November 1995 EasyJet’s inaugural flight flew from London Luton to Glasgow and Edinburgh with the wet leased Boeing 737-200 aircraft. April 1996, they launched their first…show more content…
However, the increase in sales revenue was at a higher proportion compared to the total costs, so the profit after tax for 2014 was £450million, an increase by 13.1% from last year. The table below shows the financial overview for year 2014 and 2013. 2014 2013 £ million £ million Total Revenue 4,527 4,258 Costs excluding fuel (2,695) (2,598) Fuel (1,251) (1,182) Profit before tax 581 478 Tax charge (131) (80) Profit after tax 450 398 MANAGEMENT ACCOUNTING IN EASYJET PLC Both financial and management accounting are important tools in a business but both have different purposes. Financial accounting is used to present the financial health of an organization to its external stakeholder. However, management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. In all common businesses, shareholders generally worry about the income and loss incurred by the company but in the flight industry customer’s safety is always top priority. Besides safety, the second most important concern would be providing the passenger with an exciting travel experience at a minimal cost while maintaining a respectable profit margin that would not concern the shareholders too much. For a budget airline like EasyJet, they might use the ‘Cost Volume
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