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Performance of Airlines: A Comparative Analysis for the COVID-19 Era

Performance of Airlines: A Comparative Analysis for the COVID-19 Era
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Author(s): Dilek Teker (Isik University, Turkey)and Suat Teker (Isik University, Turkey)
Copyright: 2022
Pages: 21
Source title: Digitalization and the Impacts of COVID-19 on the Aviation Industry
Source Author(s)/Editor(s): Salim Kurnaz (Suleyman Demirel University, Turkey & Kazimiero Simonaviciaus University, Lithuania)and Emrah Argın (Malatya Turgut Ozal University, Turkey)
DOI: 10.4018/978-1-6684-2319-6.ch014

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Abstract

This chapter investigates the financial performance of airline companies and proposes a harmonic index to state a performance ranking for the COVID-19 era covering the years 2018, 2019, and 2020. All data required for this study were obtained from the Thomson-Reuters database. A total number of 111 airlines are reached and listed by total assets. The 20 biggest airlines by total assets in 2020 are chosen for this study. A harmonic index is constructed by using performance indicators for profitability, liquidity, and efficiency. Then, the biggest 20 airlines are ranked by the harmonic index values for the COVID-19 era. The results revealed that North America and European-based airlines performed very badly in 2020 compared to pre-COVID years while Far East-based airlines were able to manage the pandemic year much better.

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