The Interaction of Global Economy Mobility on the Financial Performance of Flagged Airlines

Yıl 2024, Cilt: 8 Sayı: 3, 339 - 346

Orhan Özaydın

https://doi.org/10.30518/jav.1501825

Öz

This study examines the impact of global economic mobility and domestic production on revenue and EBITDA, which are income statement performance indicators of flagged carrier’s airline companies. The research question is whether the global economic trade mobility and domestic production will lead to an effect in the number of individuals traveling, and thus eventually affect the revenue and profitability performance of airline companies. There are studies in the literature that have selected macroeconomic indicators as affecting travel volume and financials. In this study, trade openness and direct investments represent the global economy's mobility. Short-term interest rates, oil prices and exchange rates are included in the model as a control variable. The results of the panel model indicate that trade openness have a positive effect on firms' revenues. Airline companies should develop their financial forecasts by monitoring the macroeconomic indicators that have shown significant results from empirical analysis.

Anahtar Kelimeler

Flagged Airlines, Trade Openness, GPD, Revenues, EBITDA

Etik Beyan

Etik gerektirir durum yoktur.

Destekleyen Kurum

yok

Teşekkür

yok

Kaynakça

• Adıgüzel, M. (2013). Ekonomik Küreselleşmenin Türkiye Ekonomisine Etkileri [The Effects of Economic Globalisation on Turkish Economy]. Akademik Bakış Dergisi, (35), 1-20.
• Alabi, K.O. (2019). The Impact of Foreign Direct Investment on Economic Growth: Nigeria Experience. Open Journal of Applied Sciences, 9(5), 372-385.
• Alıcı, A. (2023). Macroeconomic Determinants of Financial Failure Risk in Airlines. Journal of Aviation, 7(3), 425-437.
• Alıcı, A. (2024). Analysis of Macroeconomic Factors Affecting Stock Price in Airlines. Anduli, Revista Andaluza de Ciencias Sociales, (25), 93-137.
• Balavaca, M., and Pugh, G. (2016). The Link between Trade Openness, Export Diversification, Institutions and Output Volatility in Transition Countries. Economic Systems, 40(2), 273-287.
• Bouwens, J., Kok, T. and Verriest, A. (2019). The Prevalence and Validity of EBITDA as a Performance Measure.
• Comptabilité Contrôle Audit, 25(1), 55-105.
• Breusch, T.S. (1978). Testing for autocorrelation in dynamic linear models. Australian Economic Papers, 17(31), 334–355.
• Breusch, T.S. and Pagan, A.R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica 47(5), 1287–1294.
• Breusch, T.S., and Pagan, A.R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239–253.
• Choi, J. H. (2023). A Study on the Change in the Significance of GDP as a Determinant of Air Demand: Evidence from USA. Transport Policy, (133), 186-197.
• Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20(2), 249-272.
• Demetrescu, M., Hassler, U. and Tarcolea, A. I. (2006). Combining Significance of Correlated Statistics with Application to Panel Data. Oxford Bulletin of Economics and Statistics, 68(5), 647–633
• Dorman, P. (2000). Actually Existing Globalization. Rethinking Globalization. Palgrave Macmillan, London, 32- 55.
• Eğilmez, F.Y. (2020). The Long-Run Relationship between Airline Transport, Export Volume and Economic Growth: Evidence from USA. ARHUSS, 3(2), 466-482.
• Fujii, E. (2017). Government Size, Trade Openness, and Output Volatility: A Case of Fully Integrated Economies. Open Economic Review, 28(4), 661–684.
• Godfrey L.G. (1978). Testing against general autoregressive and moving average error models when the regressors include lagged dependent variables. Econometrica, 46(6), 1293–1301.
• Hausman, J. (1978). Specification Tests in Econometrics. Econometrica, 46(6), 1251-1272.
• Hazel, B., Stalnaker, T., Taylor, A., and Usman, K. (2014). Airline Economic Analysis. Oliver Wyman. Retrieved from www.oliverwyman.com at 15.02.2024.
• Horobet, A., Zlatea, M. L. E., Belascu, L. and Dumitrescu, D. G. (2022). Oil price volatility and airlines’ stock returns: Evidence from the global aviation industry. Journal of Business Economics and Management, 23(2), 284–304.
• Hsu, C.C. (2017). How Fuel Price Shocks Affect Airline Stock Returns: An Empirical Study of Major Us Carriers. The International Journal of Business and Finance Research, 11(2), 51-59.
• Kulendran, N. and Wilson, K. (2000). Modelling Business Travel. Tourism Economics, 6(1), 47-59. Mollick, A. V. and Amin, M. R. (2021). Occupancy, oil prices, and stock returns: Evidence from the U.S. airline industry. Journal of Air Transport Management, 91(C), 102015.
• Nwakuya, M. T. and Ijomah, M. A. (2017). Fixed Effect Versus Random Effects Modeling in a Panel Data Analysis; A Consideration of Economic and Political Indicators in Six African Countries, International Journal of Statistics and Applications, 7(6), 275-279.
• Pamungkas, D.P. and Suhadak, S. (2017). The Effect of Jet Fuel Price and Macroeconomics Variables on Profitability of Airline Industry in Asia (Study at Airline Companies in Indonesia, India, and China Period 2006- 2015). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 50(3), 208-217.
• Pazarlıoğlu, V. and Gürler Ö. K. (2007). Telekomünikasyon Yatırımları ve Ekonomik Büyüme Panel Veri Yaklaşımı [Telecommunication Investments and Economic Growth Panel Data Approach]. Finans Politik ve Ekonomik Yorumlar Dergisi, 44(508), 35-43.
• Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Discussion Paper No. 1240, IZA, Bonn.
• Şahin, S. (2021). The Relationships between Foreign Direct Investment, Trade Openness, and Economic Growth: The Case of Selected Countries and Turkey. EKOIST: Journal of Econometrics and Statistics, (35), 111- 128.
• Tanaka, T. (2019). The Effect of Jet Fuel Price and Macroeconomics Variables on Profitability of Airline Industry in Asia (Study at Airline Companies in Indonesia, India, and China Period 2006-2015). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 50(3), 208-217.
• Tatoğlu, F.Y. (2012). İleri panel veri analizi stata uygulamalı [Advanced panel data analysis with stata application]. 1st press, Beta, İstanbul.
• Tsui, W. H. K. and Fung, M. K. Y. (2016). Causality between Business Travel and Trade Volumes: Empirical Evidence from Hong Kong. Tourism Management, 52(C), 395-404.
• Van De Vijver, E., Derudder, B. and Witlox, F. (2014). Exploring Causality in Trade and Air Passenger Travel Relationships: The Case of Asia-Pacific, 1980–2010. Journal of Transport Geography, 34(C), 142-150.
• Wiredu, J., Nketiah, E. and Adjei, M. (2020). The Relationship between Trade Openness, Foreign Direct Investment and Economic Growth in West Africa: Static Panel Data Model. Journal of Human Resource and Sustainability Studies, 8(1), 18-34.
• Wooldridge, J.M. (2010). Econometric Analysis of Cross–Section and Panel Data. 2nd edition, MIT Press, London.