Authors:

Aleksandra I. Selezneva, Lecturer of Strategic and International Management Dept. Graduate School of Business, HSE University

Anna S. Veselova, Cand. Sc. (Econ.), Associate Professor of Strategic and International Management Dept., Director of the Centre for Corporate Sustain[1]ability Management. Graduate School of Business, HSE University

Abstract:

Extraordinary situations such as the COVID-19 crisis affect various financial indicators of companies, including profitability, indebtedness, and liquidity. This study aims to examine the impact of the pandemic on the financial performance of the global aviation industry. The methodological foundation is based on the prospect theory of Kahneman and Tversky. The sample consists of 20 internationally operating airline companies. The analysis covers two periods: the five years preceding the pandemic (2015–2019) and the two-year pandemic period (2020–2021). Fifteen financial ratios, grouped under liquidity, profitability, financial structure, and activity, were calculated and used as data. The data were first weighted using the entropy method, followed by analysis through the TOPSIS and PROMETHEE which are multi-criteria decision-making methods. Additionally, performance rankings for the pre-pandemic and pandemic periods were compared using Spearman rank correlation, revealing consistency between TOPSIS and PROMETHEE results. Both methods indicate that the pandemic generally had a negative effect on financial performance. According to TOPSIS, the most adversely affected companies were Air China, British Airways, LATAM Airlines Group, and Southwest Airlines. According to PROMETHEE, these were Aeroflot Russian Airlines, Air China, Air France, and Alaska Airlines. However, both methods also identified Emirates and Delta Airlines as companies whose financial performance improved during the pandemic. These improvements may be attributed to timely adjustments in financial strategies, enhanced operational efficiency, and agile responses to emerging opportunities. Furthermore, the findings suggest that companies with strong prepandemic performance did not necessarily retain their leading positions during the pandemic, highlighting the disruptive and unpredictable nature of such extraordinary events.

Keywords: airline industry; airline companies; financial performance; COVID-19; entropy.

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For citation: Ceyhan İ.F., Karapolat Ö. (2025). The COVID-19 pandemic’s impact on the financial performance of the aviation industry. Upravlenets / The Manager, vol. 16, no. 5, pp. 98–113. DOI: 10.29141/2218-5003-2025-16-5-7. EDN: XIEVBC