An Analysis and Research on Cost and Expense Control in the Transportation Industry: A Case Study of China Southern Airlines
DOI:
https://doi.org/10.71204/4dm4mx59Keywords:
Cost and Expense Control, Transportation Industry, Southern Airlines, Fixed Cost RatioAbstract
Amid intensifying global competition and a volatile external environment, strengthening cost and expense management has become crucial for transportation enterprises to enhance competitiveness. This paper systematically examines cost and expense management at China Southern Airlines using the company as a case study. Analysis of its financial data from 2019 to 2024 reveals characteristics such as a high proportion of fixed costs and strong sensitivity to jet fuel costs. Compared with low-cost carriers like Spring Airlines, China Southern lags significantly in key operational efficiency metrics including fixed cost ratio, sales expense ratio, and aircraft daily utilization rate. To address these challenges, this paper proposes actionable improvement strategies across multiple dimensions: optimizing fleet structure, promoting labor cost flexibility, integrating sales channels, and enhancing operational efficiency. These measures aim to help China Southern Airlines build a more resilient and competitive cost management system, while providing practical reference for cost optimization in similar transportation enterprises.
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Copyright (c) 2026 Siqi Peng, Yutong Zhao, Sinuo Liu (Author)
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