Araştırma Makalesi
BibTex RIS Kaynak Göster

FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA

Yıl 2021, Cilt: 14 Sayı: 1, 121 - 122, 31.12.2021
https://doi.org/10.17261/Pressacademia.2021.1503

Öz

Purpose- The purpose of this study is to give rankings of the top 20 airlines in the world according to some financial performance indicators
for the time period between years 2018 and 2020. Additionally, this study will highlight some of the financial performance indicators of this
top 20 airline companies during the COVID-19 era in 2020. Airline industry is very important for modern society and it has a crucial role for
globalization and businesses by connecting regions, promoting global trade and tourism and hence enabling economic and social
development. Over the last two decades, the troubled airline companies were often on news delebrating financial difficulties, layouts and
distrupted scheduled flights. Many well-known airline companies needed financial rescue and either received government fundings or seeked
consolidation or a partnership. COVID-19 also had a crucial impact on the deterioration of the airline industry due to quarantinas and
shutdowns for travel and business. Because of these reasons, it is very important to see the rankings of the top 20 airlines in the world and
indicate some of the financial performance measures of these companies during the COVID-19 era.
Methodology- In this study, first the top 20 airlines of the world was listed by ranking the 111 public airline companies in the world according
to their total assets in 2020. The data was gathered from the REUTERS database. From again the REUTERS database, total assets, total equity,
total revenue, net income, total short-term liabilities and total long-term liabilities of this 20 airline companies was obtained in terms of USD
for the period between years 2018 and 2020. In addition, the number of employees and the number of aircrafts data was gathered to show
some operational indicators of these same airline companies for the same term. Then the rankings of this top 20 airline companies was made
considering all of these indicators and the change in the place of the rankings of airlines between years 2018 and 2020 was indicated. In this
study, it was also showed whether the ranking of the airline companies according to financial performance differed in the COVID-19 era in
2020.
Findings- The analysis of this study reveals that although the largest asset size was reported by Delta Airlines in 2020, the highest revenue
was generated by American Airlines. On the other hand, the highest number of aircrafts were employed by American Airlines in 2018, 2019
and 2020, whereas the highest number of employees worked for Lufthansa in the same years. Although American Airlines reported to gain
the highest amount of total revenues in 2020; Cathay Pacific Airlines was ranked as the number one airline company in the same year if
revenue per employee and if revenue per aircraft were considered as the performance criteria. None of these airlines was ranked as one of
the top three performers considering net income for the year 2020, which was the COVID-19 era. The change in the rankings of the top 20
airlines according to net income in 2020 clearly showed that in the COVID-19 era, the financial performance of the airline companies was hit
hard by the economic shutdowns.
Conclusion- Based upon the findings of the analysis, it may be concluded that different financial indicators must be considered together
instead of solely considering total assets, total revenues or net income to analyze financial performance of the airline companies. As it was
also stated by the related literature, both operational and financial indicators are important in the performance measurement of airline
companies. The financial performance of the airline companies influences short and long term company decisions as well as it shapes strategic
planning. Hence, a comprehensive financial performance measurement must be employed in strategic planning of airline companies.

Kaynakça

  • Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability, 12, 366-379.
  • Alan, Y., & Lapré, M. A. (2018). Investigating operational predictors of future financial distress in the US airline industry. Production and Operations Management, 27(4), 734-755.
  • Baydar, B., & Dursun, G. D. (2019). An application of risk management on airline industry via financial ratios and artificial intelligence. International Journal of Business and Applied Social Science, 5(6), 668-681.
  • Dağlı, D. (2021). Havayolu işletmelerinin Covid-19 öncesi ve Covid-19 sürecindeki finansal performanslarının Topsis yöntemi ile değerlendirilmesi. İşletme Araştırmaları Dergisi, 13(3), 2242-2255.
  • Feng, C. M., & Wang, R. T. (2000). Performance evaluation for airlines including the consideration of financial ratios. Journal of Air Transport Management, 6(3), 133-142.
  • Gole, I., Dobrea, R. C., & Gombos, C. C. (2021). Aviation industry-challenges and uncertainties after the Covid-19 pandemic. In SHS Web of Conferences (Vol. 92). EDP Sciences.
  • Huang, C. C. (2021). Assessing the financial performance of airlines in the Asia-Pacific region. Investment Management and Financial Innovations, 18(2), 234-244.
  • Kalemba, N., & Campa-Planas, F. (2019). Safety and the economic and financial performance in the airline industry: is there any relationship? Aviation, 23(1), 7-14.
  • Kiracı, K., & Bakır, M. (2020). Evaluation of airlines performance using an integrated critic and codas methodology: The case of star alliance member airlines. Studies in Business and Economics, 15(1), 83-99.
  • Kı ̇raci, K., & Yaşar, M. (2020). The determinants of airline operational performance: an empirical study on major world airlines. Sosyoekonomi, 28(43), 107-117.
  • Lee, J. (2019). Effects of operational performance on financial performance. Management Science Letters, 9(1), 25-32.
  • Lee, S., Kim, H., & Lee, N. (2019). A comparative analysis of financial and operational performance pre-and post-IPO: with a focus on airline companies. Academy of Accounting and Financial Studies Journal, 23(3), 1-14.
  • Nasir, A. M., Ahmed, A., & Barkat, W. (2017). Operational performance and financial performance of Malaysia Airlines. Paradigms, 11(1), 34- 40.
  • Rababah, A., Al‐Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing the effects of COVID‐19 pandemic on the financial performance of Chinese listed companies. Journal of Public Affairs, 20(4), e2440.
  • Rosini, I. & Gunawan, J. (2018). Financial ratio and performance airlines industry with DEA and TOPSIS model. International Journal of Pure and Applied Mathematics, 119(10), 367-374.
  • Suhardjanto, D., & Ajibroto, N. (2017). Ownership structure and financial performance: an empirical study of listed airlines industry in Asia and Australia. Review of Integrative Business and Economics Research, 6(1), 121-130.
  • Wang, Y. J. (2008). Applying FMCDM to evaluate financial performance of domestic airlines in Taiwan. Expert Systems with Applications, 34(3), 1837-1845.
  • Zhang, Q., Koutmos, D., Chen, K., & Zhu, J. (2021). Using operational and stock analytics to measure airline performance: A network DEA approach. Decision Sciences, 52(3), 720-748.
Yıl 2021, Cilt: 14 Sayı: 1, 121 - 122, 31.12.2021
https://doi.org/10.17261/Pressacademia.2021.1503

Öz

Kaynakça

  • Abdi, Y., Li, X., & Càmara-Turull, X. (2020). Impact of sustainability on firm value and financial performance in the air transport industry. Sustainability, 12, 366-379.
  • Alan, Y., & Lapré, M. A. (2018). Investigating operational predictors of future financial distress in the US airline industry. Production and Operations Management, 27(4), 734-755.
  • Baydar, B., & Dursun, G. D. (2019). An application of risk management on airline industry via financial ratios and artificial intelligence. International Journal of Business and Applied Social Science, 5(6), 668-681.
  • Dağlı, D. (2021). Havayolu işletmelerinin Covid-19 öncesi ve Covid-19 sürecindeki finansal performanslarının Topsis yöntemi ile değerlendirilmesi. İşletme Araştırmaları Dergisi, 13(3), 2242-2255.
  • Feng, C. M., & Wang, R. T. (2000). Performance evaluation for airlines including the consideration of financial ratios. Journal of Air Transport Management, 6(3), 133-142.
  • Gole, I., Dobrea, R. C., & Gombos, C. C. (2021). Aviation industry-challenges and uncertainties after the Covid-19 pandemic. In SHS Web of Conferences (Vol. 92). EDP Sciences.
  • Huang, C. C. (2021). Assessing the financial performance of airlines in the Asia-Pacific region. Investment Management and Financial Innovations, 18(2), 234-244.
  • Kalemba, N., & Campa-Planas, F. (2019). Safety and the economic and financial performance in the airline industry: is there any relationship? Aviation, 23(1), 7-14.
  • Kiracı, K., & Bakır, M. (2020). Evaluation of airlines performance using an integrated critic and codas methodology: The case of star alliance member airlines. Studies in Business and Economics, 15(1), 83-99.
  • Kı ̇raci, K., & Yaşar, M. (2020). The determinants of airline operational performance: an empirical study on major world airlines. Sosyoekonomi, 28(43), 107-117.
  • Lee, J. (2019). Effects of operational performance on financial performance. Management Science Letters, 9(1), 25-32.
  • Lee, S., Kim, H., & Lee, N. (2019). A comparative analysis of financial and operational performance pre-and post-IPO: with a focus on airline companies. Academy of Accounting and Financial Studies Journal, 23(3), 1-14.
  • Nasir, A. M., Ahmed, A., & Barkat, W. (2017). Operational performance and financial performance of Malaysia Airlines. Paradigms, 11(1), 34- 40.
  • Rababah, A., Al‐Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing the effects of COVID‐19 pandemic on the financial performance of Chinese listed companies. Journal of Public Affairs, 20(4), e2440.
  • Rosini, I. & Gunawan, J. (2018). Financial ratio and performance airlines industry with DEA and TOPSIS model. International Journal of Pure and Applied Mathematics, 119(10), 367-374.
  • Suhardjanto, D., & Ajibroto, N. (2017). Ownership structure and financial performance: an empirical study of listed airlines industry in Asia and Australia. Review of Integrative Business and Economics Research, 6(1), 121-130.
  • Wang, Y. J. (2008). Applying FMCDM to evaluate financial performance of domestic airlines in Taiwan. Expert Systems with Applications, 34(3), 1837-1845.
  • Zhang, Q., Koutmos, D., Chen, K., & Zhu, J. (2021). Using operational and stock analytics to measure airline performance: A network DEA approach. Decision Sciences, 52(3), 720-748.
Toplam 18 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Finans, İşletme
Bölüm Makaleler
Yazarlar

Dilek Teker Bu kişi benim 0000-0002-3893-4015

Suat Teker Bu kişi benim 0000-0002-7981-3121

Melike Cobandag Bu kişi benim 0000-0002-8020-6783

Yayımlanma Tarihi 31 Aralık 2021
Yayımlandığı Sayı Yıl 2021 Cilt: 14 Sayı: 1

Kaynak Göster

APA Teker, D., Teker, S., & Cobandag, M. (2021). FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA. PressAcademia Procedia, 14(1), 121-122. https://doi.org/10.17261/Pressacademia.2021.1503
AMA Teker D, Teker S, Cobandag M. FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA. PAP. Aralık 2021;14(1):121-122. doi:10.17261/Pressacademia.2021.1503
Chicago Teker, Dilek, Suat Teker, ve Melike Cobandag. “FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA”. PressAcademia Procedia 14, sy. 1 (Aralık 2021): 121-22. https://doi.org/10.17261/Pressacademia.2021.1503.
EndNote Teker D, Teker S, Cobandag M (01 Aralık 2021) FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA. PressAcademia Procedia 14 1 121–122.
IEEE D. Teker, S. Teker, ve M. Cobandag, “FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA”, PAP, c. 14, sy. 1, ss. 121–122, 2021, doi: 10.17261/Pressacademia.2021.1503.
ISNAD Teker, Dilek vd. “FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA”. PressAcademia Procedia 14/1 (Aralık 2021), 121-122. https://doi.org/10.17261/Pressacademia.2021.1503.
JAMA Teker D, Teker S, Cobandag M. FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA. PAP. 2021;14:121–122.
MLA Teker, Dilek vd. “FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA”. PressAcademia Procedia, c. 14, sy. 1, 2021, ss. 121-2, doi:10.17261/Pressacademia.2021.1503.
Vancouver Teker D, Teker S, Cobandag M. FINANCIAL PERFORMANCE RANKING OF AIRLINES IN THE COVID-19 ERA. PAP. 2021;14(1):121-2.

PressAcademia Procedia (PAP) publishes proceedings of conferences, seminars and symposiums. PressAcademia Procedia aims to provide a source for academic researchers, practitioners and policy makers in the area of social and behavioral sciences, and engineering.

PressAcademia Procedia invites academic conferences for publishing their proceedings with a review of editorial board. Since PressAcademia Procedia is an double blind peer-reviewed open-access book, the manuscripts presented in the conferences can easily be reached by numerous researchers. Hence, PressAcademia Procedia increases the value of your conference for your participants. 

PressAcademia Procedia provides an ISBN for each Conference Proceeding Book and a DOI number for each manuscript published in this book.

PressAcademia Procedia is currently indexed by DRJI, J-Gate, International Scientific Indexing, ISRA, Root Indexing, SOBIAD, Scope, EuroPub, Journal Factor Indexing and InfoBase Indexing. 

Please contact to procedia@pressacademia.org for your conference proceedings.