The Impact of Environmental Sustainability on Financial Performance in Airline Companies Based on Legitimacy Theory

Abstract

The aim of this study is to examine the relationship between environmental sustainability discourses and financial performance of companies operating in the aviation industry within the framework of legitimacy theory. Legitimacy theory suggests that businesses seek to gain legitimacy by aligning their actions with social norms and values. In this context, it was investigated whether environmental sustainability discourses have a direct relationship with financial performance. The sample of the study consists of the top 30 airline companies in the Skytrax 2024 ranking. The annual and sustainability reports of these companies were examined using the content analysis method and the obtained data were subjected to statistical tests and correlation and regression analyses were performed. The analysis results show that there is no significant relationship between financial performance and sustainable environmental discourse performance. This finding, in line with legitimacy theory, reveals that environmental sustainability discourses are used as part of corporate legitimacy and reputation strategies rather than gaining financial gain. At the same time, as a result of the study, it was determined that the ranking made by Skytrax was also considered outside the financial performance variable and that the awards given as a result of this ranking were a legitimacy tool.

Keywords

• Sustainability Performance
• Aviation Industry
• Financial Performance
• Legitimacy Theory

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