Airline Accounting Services

Airline accounting services are essential for managing the finances of airlines, which handle complex operations and large transaction volumes. These services include tracking revenue, managing expenses, and ensuring compliance with international rules. Unlike regular accounting, airline accounting faces unique challenges like handling deferred revenue from ticket sales, fuel hedging, and managing different revenue streams such as cargo and extra services. In a highly competitive industry, accurate accounting is key to maintaining profitability and efficient operations. By utilizing specialized systems and industry expertise, airline accounting services enable airlines to tackle financial challenges, boost cash flow, and comply with rigorous industry standards, such as the International Financial Reporting Standards (IFRS) and criteria outlined by the International Air Transport Association. Skybook specializes in airline revenue and cost accounting, delivering key services that promote financial accuracy and operational efficiency. To ensure that all income is precisely documented, our revenue accounting includes exact tracking of ticket sales, ancillary revenue, and interline billing. In order to keep things transparent, we also handle changes and refunds. We closely monitor operational costs such as fuel, crew pay and incentives, and maintenance to facilitate efficient cost allocation and profitability analysis. Airlines may make well-informed decisions with the real-time information provided by our financial reporting and forecasting solutions. We also make sure that all national, regional, and international laws are followed. Put your trust in Skybook to increase the profitability of your airline and optimize your financial management.

Key Functions of Airline Accounting Services

Revenue Accounting
Revenue accounting involves tracking and managing all sources of income for airlines, including ticket sales, cargo revenue, and ancillary services. This process includes accurately recording transactions, recognizing revenue in accordance with accounting standards, and reconciling discrepancies. Accurate revenue accounting is essential for ensuring financial precision and offering valuable insights for strategic decision-making.

Expense Management
Effective expense management is crucial for maintaining profitability in the airline industry. Accounting services monitor costs associated with fuel, maintenance, labor, and airport fees. By analyzing cost drivers and identifying inefficiencies, airlines can implement cost control measures that lead to better budget management and increased profitability.

Fleet Accounting
Fleet accounting manages the financial aspects of an airline’s aircraft assets, including leasing agreements, depreciation, maintenance costs, and financing. Accounting services ensure that these assets are accurately tracked and reported, helping airlines assess their fleet's value and make informed decisions regarding fleet management and investment.

Tax Compliance
The aviation sector is subject to various tax regulations, including sales tax, aviation fuel tax, and airport fees. Airline accounting services ensure accurate calculation, collection, and reporting of these taxes, helping airlines remain compliant with local and international tax laws. This adherence lowers the risk of facing audits and any related penalties.

Financial Reporting
Consistent financial reporting is crucial for assessing an airline's financial stability. Accounting services provide comprehensive financial statements, performance analyses, and budget reports tailored to the aviation industry. These reports are essential for management to make well-informed decisions and develop effective strategies.

Cash Flow Management
Effective cash flow management is vital for the long-term sustainability of airline operations. Accounting services assist airlines in forecasting cash flow, managing receivables and payables, and ensuring sufficient liquidity for day-to-day operations. Proper cash flow management helps airlines mitigate financial risks and uphold their operational stability.

Loyalty Program Accounting
Numerous airlines run frequent flyer programs that necessitate meticulous accounting of loyalty points or miles. Accounting services manage these programs by tracking accrued points, liabilities, and redemption rates, ensuring accurate reporting and compliance with industry standards.

Exception Reporting
Exception reporting involves monitoring and addressing anomalies in financial transactions, such as no-shows, cancellations, and billing discrepancies. This process helps identify issues requiring attention and ensures timely resolution, contributing to overall financial accuracy.

Audit and Compliance Support
Accounting services assist airlines in preparing for audits by ensuring that financial records are accurate and up-to-date. They provide support for compliance with industry regulations and standards, which reduces the risk of non-compliance and potential penalties.
Activities We Offer In Airline Accounting Services
- Verify Sales Data Capturing: Check data captured from PSS (Passenger Service System) and GDS and auto-invoicing for accuracy.
- PNR Capture Report Verification: Verify and update PNR (Passenger Name Record) capture reports to ensure complete and accurate data. Checkpoint: Verify any missing fields, new clients, new ta type
- Sales Summary Report Reconciliations: Compare sales summary reports with booking system data (PSS) reports to ensure accuracy.
- Exception Report Verification: Review and update exceptional reports to ensure all discrepancies are addressed. Check Point: Wrong No Show, DCS Processing mistakes, and other errors
- EMD Transaction Verification: Verify capturing reports (Not Reported) with PSS for EMD (Electronic Miscellaneous Document) transactions.
- Invoicing of EMDs: Invoice EMDs as EBT (Excess Baggage) and MCOs (Miscellaneous Services).
- Daily Invoicing of Cargo: Collect or verify the cargo revenue reports from PSS and invoicing and it will be posted to control accounts.
- Charter Invoicing: Charter Invoicing as per break up of Tax and other components
- Credit Notes Verification: Verify credit notes for any other reasons
- Billed Value Verification: Verify billed value with tax, civil aviation, or other payable components for accuracy. Verification Checkpoint: Verification can be done through PSS Reports
- Cash Receipt Entry: Make Receipt voucher against captured cash sales data for sales office
- Compare Flight Wise Flown Data: Verify flown data from Passenger Service System (PSS/DCS) using ETL Module. Checkpoint: Verify the Data with PNL and confirm it
- Generate Paper Ticket (if applicable): For direct ticketing at airport or go-show, rebate ticket verify flown data and generate paper tickets
- Verify and Allocate Services: Verify EBT, Miscellaneous Services and other services and allocate services to respective flights using respective Modules.
- Cargo Control Account Reconciliation & Cargo Shipment: Reconciliation of Cargo Control Account to Revenue Accounts through Shipment Module Verification of Charter Revenue Split up and payables and Reconciliation
- Interline (Payable) Reconciliation: Collect interline statement and verify the auto reconciled data with Airline System and raise disputes for any excess or short billing and follow up with partner airlines
- Credit Transaction Reconciliation: Verify credit card transactions through the sales office.
- Identify other Incomes streams of Airlines and make provision through other invoice modules
- Posting of No Show Control Accounting to Revenue Accounting
- GSA Account Posting
- Reconciliations of Agents Accounts through PSS reports.
- Verification of Excess Voiding, Duplicate or Chun Bookings, Force Quote, Wrong Refund through GDS
- Verification of Agents Commission/incentive and posting
Airline Reports Preparation Services
- Monthly Passenger Load Factor Reports
- Periodic reports for Civil Aviation & Tax Authority
- Revenue Reports by Aircraft and Route
- Revenue Reports by Country, Region, Inbound & Outbound
- Revenue Reports by Split up of EBT, MCO, Cargo, Charter Revenue & passenger
- Periodic Reports for Civil Aviation /Concerned Authority with Flown Passengers with Passport Numbers
- Agency Commission Reports (PLB)
- Revenue Report by GSAs, Agencies, Online & Offline Offices – Performance Reports based on Top Sales
- Revenue Report Breakup of PSS, GDS
- Number of Tickets Issued as Rebate or Staff Travels
- Revenue Yield Report per passenger
- Refunds & No Show Reports
- Revenue comparison by Status (Flown, Refunds, No Show, Open etc.)