6 Essential Cost-Control KPIs To Manage Airline Operations

Cost-Control and Cost-Reduction — probably the two words you hear most when talking to airlines nowadays. Due to Corona and the whole pandemic situation, airlines are suffering enormous pressure to reduce costs. And I’m convinced that only those airlines that manage to control and reduce costs will survive in the long-term.

Of course, in the first step, airlines will focus on the most prominent cost reduction measures: reducing workforce, provider streamlining, expenditure freeze, etc.

If you can’t measure it, you can’t improve it

Nevertheless, besides these essential measures, I genuinely believe that airlines have (and certainly will) focus on operational costs too. However, in order to do that, it is inevitable to have the right Key Performance Indicators (KPI) in place. Always remember the saying: If you can’t measure it, you can’t improve it.

In this context, I would like to introduce six KPIs with this blog post to help airlines control essential aspects of the operations. The KPIs focus on different facets of an airline’s operation. And I think this is required to establish a holistic view of an airline’s operational costs.

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