ECONOMIC IMPACT OF COVID-19 ON THE EUROPEAN AIRLINE INDUSTRY

Abstract

Business entities from various industries are facing significant challenges since the COVID-19 pandemic outbreak. The airline industry, along with travel, tourism and hospitality, have been the worst affected economic sectors during the coronavirus health crisis. The paper analyzes the economic impact of COVID-19 on the European airline industry. The research is made by measuring the liquidity and profitability of five leading European airline companies before and after the pandemic outbreak (in the period from 2015 to 2020). The aim is to determine the extent of the health crisis consequences on the financial results of the five European companies with the largest number of passengers in 2019. The research is conducted through financial statement analysis and descriptive statistics. The results show that the COVID-19 pandemic had a significantly more detrimental effect on profitability compared to the liquidity of European airlines.