Evaluation of the Financial Performance of Airlines Before and During the Covid-19 Process with TOPSIS Method

Abstract

Purpose – The purpose of this study is to compare and evaluate the financial performances of the leading airline companies in Europe before and during the Covid-19 process.

Design/methodology/approach –  In the study, the financial performances of 7 airline companies in the top 10 in Europe in terms of number of passengers in 2019, the second quarter of 2019, the fourth quarter of 2019 and the second quarter of 2020 were taken into consideration. Financial ratios, which are frequently used in the literature, calculated through the data obtained from the financial reports published by airline companies to be used in performance evaluation, are calculated for each period and each airline. Then, with the help of the obtained financial ratios, the financial performances of airline companies for each period were analyzed using the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method.

Findings –  According to the findings obtained as a result of the TOPSIS analysis, the financial performances of airline companies in the second quarter of 2019, respectively; Pegasus Airlines (PGS), International Airlines Group (IAG), Aeroflot Airlines (AFL), Norwegian Airlines (NAX), Air France-KLM Group (AFR-KLM), Turkish Airlines (THY) and Lufthansa Airlines (DLH). In the fourth quarter of 2019, the financial performances of airline companies, respectively; AFR-KLM, DLH, AFL, THY, IAG, PGS and NAX. In the second quarter of 2020, the financial performance ranking;  NAX, PGS, THY, AFL, AFR-KLM, IAG and DLH.

Discussion –  As a result of the study, it was seen that the financial performances of airline companies differed for the three periods evaluated.