The numbers below are from the 2001 annual reports of two major airlines.

Southwest Airlines

Delta Air Lines

(In millions)

2001

2000

2001

2000

Sales

$5,555

$5,650

$13,879

$16,741

Net income (loss)

511

603

1,216

828

Total assets

8,997

6,670

23,605

21,931

Calculate return on assets, asset turnover, and profit margin. Which airline appears to be more successful? Do you find evidence of differences in operating strategies, or do both appear to compete on the same basis? What could the less successful line do to improve profits?