Should United Airlines Preform A Marginal Analysis?

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Recently, the WSJ had displayed data regarding United Airlines signifying that the company was not covering their flight costs from San Francisco to Washington D.C. Due to this, they had assumed United Airlines is unable to cover their costs, so in this case it was suggested for them to discontinue their services. To begin, it is critical that United Airlines should preform a marginal analysis in order to make a final decision. A marginal analysis focusses on incremental costs and benefits that will help aid companies in making a final decision. After completing this analysis, the company can then make an executive decision on whether or not they should discontinue their flights. United Airlines must pay attention to their revenue and expenditures.

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