Revenue Accounting In Airline Industry

This is an outline of generic passenger revenue accounting processes as used by many airline revenue accounting systems.

Revenue accounting in airline industry. Because of the industry low margins revenue recognition is one of the most critical accounting policies for airlines. To help you drive your implementation project to the finish line we ve pulled together a list of the key considerations that you need to focus on along with a more detailed practical guide pdf 320 kb. Airline revenue accounting system overview. It is intended only as a guideline to the principal processes and does not represent any particular system however it may be useful when considering possible revenue accounting system choices.

The changing role of revenue accounting current developments are creating high hurdles for air carrier executives. Accounting for the aviation and airline business is a specialist area that requires an understanding of the industry. In response to growth in the volume of interline transactions and the high cost of skilled staff many airlines have adopted sampling techniques for the interline billing of other airlines passenger tickets. The industry has invested heavily in developing sophisticated systems for forecasting demand managing the availability of inventory and monitoring and responding to competitors prices in the market.

Revenue accounting of today more focus on data analysis then on simple ticket processing. On this page you can access a range of articles books and online resources providing quick links to guidance and information for atol reporting accountants. Revenues are only recognized in accounting when the airline s. The changed industry structures also have significant effects on the role of an airline s revenue accounting department.

Our operation and accounting controls keep you compliant with the most stringent auditing standards. Experience the most accurate revenue accounting solution in the industry. In a matter of months the new revenue recognition standard ifrs 15 will change the way airlines account for air tickets cargo airway bills loyalty points and change fees. Airlines are often held up as the epitome of best practice in pricing and revenue management.