There is no doubting the fact that rapid transformational changes are taking place in the aviation industry across the globe now and the UK is not exempted. Mainstream carriers such as British Airways (BA) now acknowledge they do have serious challengers in the low - cost airlines such as easyJet and Ryanair. They now know that failure to start compete on price with the no-frills airlines in every available way will eventually leave holes in their profit margins as well as their bottom-line. This work is an attempt to take a critical look into the operational activities of the two business organisations involved and their impacts on their financial performance over a certain period of time. Various conclusions and recommendations are then reached after performing certain finance related calculations on figures from their profit and loss accounts and other financial statements.