4 Marker Capacity Utilisation

Question 1

Capacity utilisation

Answer 1

Measures level of output a business is producing in relation to its capacity.

Question 2

Application - Capacity utilisation fell in this instance 91.5 - 78.2 - due to global health crisis (application in text)

What does this mean for easyJet

Answer 2

Means more empty seats for easyJet

Question 3

How does this affect the average unit costs

Why?

Answer 3

Means there’s an increase in average unit costs as costs now spread over lesser passengers