Will COVID-19 Threaten the Survival of the Airline Industry?

Xiao, Xuan; Khan, Khalid; Su, Chi‐Wei; Khurshid, Adnan

doi:10.3390/su132111666

Cited by 25 publications

(11 citation statements)

References 38 publications

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“…Xuan et al conducted in-depth analysis and research on data in 15 countries from the International Civil Aviation Organization. To examine and project the Covid-19 influence on the airline industry revenues, they employed the vector autoregression model (VAR) [1]. The countries in this study cover the nations, which are tourism and economic counties.…”

Section: Related Researchmentioning

confidence: 99%

“…The pandemic has resulted in social isolation and lockdowns, severely impacting the economy and tourism. The number of scheduled flights and passengers declined by nearly 80% in 2020 compared to 2019 because of rigorous global lockdown, and only two-thirds of the flight can be filled as a result of social isolation, which has squeezed ARL [1]. The current pandemic is predicted to cause a 48% total decline in airline industry revenue.…”

Section: Related Researchmentioning

confidence: 99%

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The Impact of Covid-19 on the Profitability and Liquidity of Air New Zealand: Compare with the Whole Airline Industry

Chen¹

2023

HBEM

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As an industry sensitive to changes in external factors, the airline industry has been affected negatively by the Covid-19 outbreak. Global travel restrictions sent shock waves throughout the industry, and Air New Zealand is no exception. This study investigates the impact of Covid-19 on the profitability and liquidity of Air New Zealand and the whole airline industry based on financial ratio and regression analysis. The profitability and liquidity are represented by Operating Return on Assets (OROA) and Quick Ratio. Twenty commercial airlines from around the world were chosen as samples to examine how Covid-19 affected the overall airline industry's profitability and liquidity. This study compares the effects of Covid-19 on their profitability and liquidity in an effort to identify commonalities and variances. The study results show that both liquidity of Air New Zealand and the whole airline industry received a significant and positive impact from the Covid-19 pandemic due to the airline's private remediation measures and government interventions. In addition, the study found that the profitability of Air New Zealand was not received significant and negative impact by the Covid-19 pandemic like the whole airline industry due to the cargo schemes supported by New Zealand and Australia. This study is helpful for airlines and the government to formulate remediation measures and policies to facilitate the recovery of the airline industry. Finally, this study recommended that governments can place orders to airlines to support the recovery of the airline industry. And each airline can diversify its sources of profitability to mitigate the negative impact of Covid-19.

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Section: Related Researchmentioning

confidence: 99%

Section: Related Researchmentioning

confidence: 99%

The Impact of Covid-19 on the Profitability and Liquidity of Air New Zealand: Compare with the Whole Airline Industry

Chen¹

2023

HBEM

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“…They also analyzed the airline revenues due to COVID-19 effect. In the seventh and last study, Xuan et al (2021) forecasted the air transport recovery period. He used the vector autoregression approach to calculate the period of recovery.…”

Section: Literature Reviewmentioning

confidence: 99%

Recovery Period of Air Transportation: Vector Error Correction Model

İnan

2022

Preprint

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Air transportation has two significant modules named air passenger and freight. Air transport is the primary module of civil aviation and because of its nature, air transport has been simultaneously affected by Pandemics and crises. Gulf Crisis, 9/11, 2008–2009 Financial Crisis, SARS, and MERS Pandemics harm air transport, however, the influence of COVID-19 was more devastating than the other Pandemics and crises due to its global effect. This effect has continued a long period that still this effect exists now with a slight trend. The aim of this study is to analyse the selected variables that shows the past and future trend of air transportation related to operational and financial status. These variables are the primary ones that can define the countries' general status in air transport. The forecasting results are examined by 9-months forecasting with Vector Error Correction Model. It is forecasted that slightly decreasing trend will proceed in the following 9-months for passenger transportation due to fall and winter seasons. It is forecasted that slightly upward trend will proceed in the following 3-months and slightly decreased in the other 6-months for cargo transportation due to potential economic crisis in 2023. The originality of this paper is the first research related to analyse passenger and freight transportation together with the operational and financial parameters that defined in the sample of data and methodology sections.

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“…The year 2020 was unprecedented within the aviation industry. In 2020, the airline industry-at a global level-experienced a very sharp and sustained decline in air passenger demand, which had a very adverse impact on the world's airlines (Garrow, Lurkin & Marla, 2022;Xuan et al, 2021). Australia's response to the COVID-19 pandemic was rapid with the closure of international borders by the Australian Government (D'Souza & Dunshea, 2021).…”

Section: Development Of the Low-cost Carriers In Australia's Internat...mentioning

confidence: 99%

The Evolution of the Low-Cost Carriers in Australia’s International Air Freight Market

Baxter

2022

Journal of Aviation

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This study examines the development of the low-cost carriers (LCCs) in Australia’s export and import air freight markets. The study period is from 2004 to 2020. The study used a qualitative instrumental case study research approach. The data gathered for the study was examined by document analysis. The study found that the development of the low-cost carriers (LCCs) share of Australia’s annual export and import air freight markets occurred in three distinct phases. In the initial phase, 2004-2005, the market was served by just one low-cost carrier (LCC) Pacific Blue Airlines, who did not transport any export or import air freight in 2004. In 2005, the airline made a strategic policy decision to transport air freight. Phase 2 saw the inception of international services by Jetstar Airways in 2006. Jetstar Airways immediately gained import and export air freight traffic. The third phases took place from 2007 to 2020, when the major Asia-based low-cost carriers entered the market, starting with AirAsia-X in 2007. The low-cost carriers (LCCs) annual air freight market growth rates oscillated substantially over the study period, particularly for export air freight traffic. Despite the strong growth, the low-cost carriers (LCCs) annual market export and import air freight shares are considerably lower than those of the dedicated all-cargo carriers and full-service networks carriers (FSNCs).

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Will COVID-19 Threaten the Survival of the Airline Industry?

Cited by 25 publications

References 38 publications

The Impact of Covid-19 on the Profitability and Liquidity of Air New Zealand: Compare with the Whole Airline Industry

The Impact of Covid-19 on the Profitability and Liquidity of Air New Zealand: Compare with the Whole Airline Industry

Recovery Period of Air Transportation: Vector Error Correction Model

The Evolution of the Low-Cost Carriers in Australia’s International Air Freight Market

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