Will COVID-19 Threaten the Survival of the Airline Industry?

The pandemic causes social distancing and lockdown, which impedes consumer confidence and contracts the economy. Hence, this study analyzes the corona (COVID-19) impact on the airline industry revenues (ALR) and forecast by the vector autoregression (VAR) method. The results indicate that gross dome...

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Autores principales:	Xiao Xuan, Khalid Khan, Chi-Wei Su, Adnan Khurshid
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	airline industry revenues economic uncertainty economic growth pandemic tourism Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/e4f5f5c12ec34edb95304d7526eeaf6a
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spelling	oai:doaj.org-article:e4f5f5c12ec34edb95304d7526eeaf6a2021-11-11T19:24:29ZWill COVID-19 Threaten the Survival of the Airline Industry?10.3390/su1321116662071-1050https://doaj.org/article/e4f5f5c12ec34edb95304d7526eeaf6a2021-10-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/11666https://doaj.org/toc/2071-1050The pandemic causes social distancing and lockdown, which impedes consumer confidence and contracts the economy. Hence, this study analyzes the corona (COVID-19) impact on the airline industry revenues (ALR) and forecast by the vector autoregression (VAR) method. The results indicate that gross domestic product (GDP) and air cargo are the best predictors of ALR. The forecasting outcomes explore if ALR will decline and expect to back to pre-COVID-19 in 2023. Our results resemble both the V-shaped and U-shaped, which suggests slow gradual recovery with longer lockdown and border disclosure. The government can restore confidence building by providing economic stimulus packages and can encourage the airline to return to travel. Furthermore, softening the passenger rules concerning the refund of unflown ticket, reducing taxes, and reducing overflight taxes, all reduce the costs. Similarly, the mutually recognized global standards are crucial for effective execution, and any temporary measures taken by the government should have a clear exit strategy. The study major limitation includes the lack of relevant research and data availability.Xiao XuanKhalid KhanChi-Wei SuAdnan KhurshidMDPI AGarticleairline industryrevenueseconomic uncertaintyeconomic growthpandemictourismEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 11666, p 11666 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	airline industry revenues economic uncertainty economic growth pandemic tourism Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	airline industry revenues economic uncertainty economic growth pandemic tourism Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Xiao Xuan Khalid Khan Chi-Wei Su Adnan Khurshid Will COVID-19 Threaten the Survival of the Airline Industry?
description	The pandemic causes social distancing and lockdown, which impedes consumer confidence and contracts the economy. Hence, this study analyzes the corona (COVID-19) impact on the airline industry revenues (ALR) and forecast by the vector autoregression (VAR) method. The results indicate that gross domestic product (GDP) and air cargo are the best predictors of ALR. The forecasting outcomes explore if ALR will decline and expect to back to pre-COVID-19 in 2023. Our results resemble both the V-shaped and U-shaped, which suggests slow gradual recovery with longer lockdown and border disclosure. The government can restore confidence building by providing economic stimulus packages and can encourage the airline to return to travel. Furthermore, softening the passenger rules concerning the refund of unflown ticket, reducing taxes, and reducing overflight taxes, all reduce the costs. Similarly, the mutually recognized global standards are crucial for effective execution, and any temporary measures taken by the government should have a clear exit strategy. The study major limitation includes the lack of relevant research and data availability.
format	article
author	Xiao Xuan Khalid Khan Chi-Wei Su Adnan Khurshid
author_facet	Xiao Xuan Khalid Khan Chi-Wei Su Adnan Khurshid
author_sort	Xiao Xuan
title	Will COVID-19 Threaten the Survival of the Airline Industry?
title_short	Will COVID-19 Threaten the Survival of the Airline Industry?
title_full	Will COVID-19 Threaten the Survival of the Airline Industry?
title_fullStr	Will COVID-19 Threaten the Survival of the Airline Industry?
title_full_unstemmed	Will COVID-19 Threaten the Survival of the Airline Industry?
title_sort	will covid-19 threaten the survival of the airline industry?
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/e4f5f5c12ec34edb95304d7526eeaf6a
work_keys_str_mv	AT xiaoxuan willcovid19threatenthesurvivaloftheairlineindustry AT khalidkhan willcovid19threatenthesurvivaloftheairlineindustry AT chiweisu willcovid19threatenthesurvivaloftheairlineindustry AT adnankhurshid willcovid19threatenthesurvivaloftheairlineindustry
_version_	1718431559481032704

Will COVID-19 Threaten the Survival of the Airline Industry?

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