The short-term effects of the Covid-19 pandemic on the airline industry: a cross-sectional analysis on profitability and its determinants

• Autor(a) principal: Rosenberger, Angela Sara
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/156865
• topic: Airline industry; Financial statement analysis; Working capital management; Profitability; Covid-19 pandemic; Cross-sectional analysis; Return on assets; Operating risk; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The purpose of this Work Project is to investigate the short-term implications of the Covid-19 pandemic on the profitability, proxied by Return on Assets, of airlines by analysing the determinants of profitability, their magnitude, and variations in the period 2018-2020 using a cross-sectional regression analysis based on data retrieved from the consolidated financial statements of 44 global airlines. Statistical evidence suggests that the Covid-19 pandemic had an indisputably negative impact on the airline industry in 2020 causing variations in the hierarchy of profitability determinants. Cash and working capital management have emerged as crucial short-term objectives for managers during that year.