Impacto de Covid-19 nas Companhias Aéreas Comerciais

Abstract

Commercial airlines industry is constantly affected by external factors. Recently Covid- 19 pandemic had a major impact in the industry, in order to reduce the transmission of the virus, restrictive measures were imposed on free movement. On this way, many flights were cancelled, the offer of flights was reduced and some companies temporarily ceased operations. The crisis on the sector was established, companies filed for bankruptcy and governments offered millions in financial aid. Given this horizon, this study proposes to investigate the effect of Covid-19 on financial performance through an analysis of airline-specific and accounting-financial ratios. This is exploratory and descriptive research. Twenty large companies were selected and three specific-airline metrics and ten financial ratios were chosen to address the airline-operating, liquidity, profitability, operating and leverage. Therefore, an analysis was made intercompanies from 2016 to 2020. Companies reacted in different ways, some were more resilient because they already had a strong domestic market, others were more fragile, such as those that depended on international flights. Just for an insight, all companies had negative net income and almost all had negative cash flow. Overall Covid-19 negatively impacted operating and leverage ratios. The biggest fall was in profitability ratios, on the other side only current liquidity improved due to more conservative strategies and financial aid from governments.

Date of Award	18 Oct 2021
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Diana Bonfim (Supervisor)