External determinants of airlines' financial performance

• Autor(a) principal: Ferreira, Luís Miguel Gonçalves
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/27711
• topic: Airline management; External variables; Financial performance; Gestão de empresas aéreas; Variáveis externas; Desempenho financeiro

Aviation is a sector that generates high revenues, but given the cost structure it entails, it is not one of the most profitable but one of the most challenging to manage. Therefore, it was assessed how certain indicators of external origin are valid to justify the values of the financial performances of the airlines. At a time when indicators such as Covid-19 unexpectedly and strongly affect businesses such as aviation, it is important to equip the scientific community and the managers of these companies themselves with a greater number of factors extrinsic to the companies with the ability to influence the profits and even the viability of these businesses. To this end, the number of air passengers carried, the number of employees, tax revenues, CO2 emissions and international tourism expenditure were selected by country and for the period between 2015 and 2020, as a function of the shareholders’ equity of a total of 46 companies, and a multiple linear regression model was used to assess the degree of relationship between these factors. After applying several and different tests, the results showed that the selected variables have an individually residual role in the fluctuations of the financial results, while in group, the impact is close to 75%, which should serve as a warning for future strategic definitions. It is hoped from this study that managers of these companies will react more readily to the effects of these indicators, and not close the door to the potential influences of many more.