Pre-and Post-COVID-19 condition, performance and future of the airline industry: Evidence from accounting data
The main purpose of this study was to analyze the pre-and post-COVID-19 condition, performance and future of the airline industry. To get the desired objective of the study current research study used the accounting information of airline industry. For the said purpose cross tabulation, frequencies, means techniques were used to draw the conclusion. To predict the future and revival of the industry study calculated the means before and after COVID-19 performance and forecast the recovery period of the industry. The accounting results showed that the condition and performance of the airline industry was good before the COVID-19 pandemic. The average results showed that operating profit margin, net profit, return on invested capital and, revenues were at acceptable levels before COVID-19. However, in the aftermath of COVID-19, all the indicators dropped significantly and become negative. Before COVID-19, the airline industry was contributing an average $118 billion in annual tax revenue to governments. Before COVID-19, the region-wise accounting results showed that the condition and performance of the airline industry was good in all regions except in Africa. After COVID-19, the airline industry in all regions encountered significant problems with negative operating profit, net profit and, return on invested capital, and a significant drop in revenue. In short, such unexpected, painful and huge losses have never been recorded throughout the history of the airline industry. The future of the airline industry is unpredictable and uncertain, but the average results showed that said industry will recover within four to five years if COVID-19 disappears in 2020.
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