Your guide to AirI KPI


The airline is overly involved with countless problems and challenges. There are times when airline executives have to drastically cancel a flight, leading to a crowd of angry and anxious passengers. Often, these scenarios lead to trouble returning airline tickets and sometimes to long-term injuries, such as reduced passenger numbers. Challenges range from minor concerns to serious flight safety issues. If they go unnoticed, they can turn a snowball into a giant problem. When planning an airline at any level or department, comprehensive planning must be carried out, especially with the inclusion of a performance management system. Then it is imperative that you understand the airline's KPI or key performance metrics.

KPIs or key performance indicators are essential to the airline's performance management system. Think of it as a bullet for a pistol, air for tires and fuel for car engines. Without these metrics, it is utterly impossible for managers to review and evaluate how effective the company strategies are. Moreover, without indicators, it is impossible to come up with wise and effective solutions. KPIs are common: they all look alike and they all apply to most types of business. However, there are exceptions to an airline operation. Therefore, key performance indicators for such organizations need to be customized. In general, airline performance management metrics are categorized into four: service metrics, flight operations, customer perspective and financial perspective.

Service indicators are a parameter used to manage the performance of airlines, which typically deals with service-oriented services. The main objective in evaluating these activities is to understand well how each employee in the service department handles it. Moreover, this will give managers an idea of ​​how new equipment and facilities improve service and possibly sales. Increasing or decreasing the number of vacancies means something and needs immediate action. Adding new suppliers and partners can also become a health service.

On the other hand, flight operations have something to do with the operational aspects of the airline, such as the number of passengers per flight, the number of flights per day, the number of flights during inclement weather, the use of aircraft and the available flight time. Fewer flights and more passengers would mean upgrading, replacing or adding an airplane.

Customer perspective indicators typically involve passengers in the evaluation process. Most of the time, they are filled out with survey, evaluation or feedback forms that need to be completed. Passengers are asked about their point of view on how the crew handles them, their luggage, their inquiries, flight fees, food and even during a security check. More complaints than praise, of course, should be worrying enough to change or improve any defect in the service.

The financial perspective, where financial managers are primarily involved, are measures used to know whether funds are appropriately allocated and used. The parameters include fuel costs, profits, costs and revenue. The negative bottom line should be the reason for further investigation and immediate action.

Service indicators, flight operations, customer perspective and financial perspective – these are the four key airline KPIs or key performance metrics that executives should always consider when managing their business. If there are other concerns that need to be addressed, the new indicators should be time-bound, reliable, measurable, measurable and specific.