The link between corporate reputation and financial performance and equilibrium within the airline industry

Abstract

This study examines how corporate reputation is perceived by investors through the financial performance and equilibrium of several airline companies. We used a sample of 22 compa-nies. Nineteen are listed in the World Airline Awards 2018 ranking based on client satisfaction, and three companies are included in the Fortune ranking and enjoying the best corporate reputations in the airline industry. The analyzed period was 2016–2018. The purpose of this study was to rank airline companies based on financial indicators by means of the TOPSIS method to see whether the companies included in the Fortune ranking would keep a similar hierarchy. Results indicated that companies maintained a similar order in the TOPSIS ranking after considering financial performance and equilibrium indicators. The overall conclusion was that companies with a good financial performance and equilibrium enjoyed a good corporate reputation from investors’ point of view.