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Malmquist financial efficiency analysis for airlines

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  • Pires, Heloisa Márcia
  • Fernandes, Elton

Abstract

This article discusses the financial efficiency of 42 airlines from 25 countries, in 2001 (the year of the September 11 terrorist attack in the United States), and their profitability in the following year. The Malmquist index was used to indicate the airlines’ capital structure changes from 2001 to 2002. The results show airline capital structure management and profitability dynamics following the unexpected event of 2001. The main conclusion is that airlines which moved more intensively to reduce their indebtedness showed improved profitability, given their size, fleet and intangible assets.

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  • Pires, Heloisa Márcia & Fernandes, Elton, 2012. "Malmquist financial efficiency analysis for airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 1049-1055.
  • Handle: RePEc:eee:transe:v:48:y:2012:i:5:p:1049-1055
    DOI: 10.1016/j.tre.2012.03.007
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    2. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2020. "Impact of Sustainability on Firm Value and Financial Performance in the Air Transport Industry," Sustainability, MDPI, vol. 12(23), pages 1-23, November.
    3. Mohsen Afsharian & Heinz Ahn, 2015. "The overall Malmquist index: a new approach for measuring productivity changes over time," Annals of Operations Research, Springer, vol. 226(1), pages 1-27, March.
    4. Carol C. Huang & Chris C. Hsu & Emilio Collar, 2021. "An Evaluation of the Operational Performance and Profitability of the U.S. Airlines," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 73-85, December.
    5. Alexakis, Christos & Izzeldin, Marwan & Johnes, Jill & Pappas, Vasileios, 2019. "Performance and productivity in Islamic and conventional banks: Evidence from the global financial crisis," Economic Modelling, Elsevier, vol. 79(C), pages 1-14.
    6. Kottas, Angelos T. & Madas, Michael A., 2018. "Comparative efficiency analysis of major international airlines using Data Envelopment Analysis: Exploring effects of alliance membership and other operational efficiency determinants," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 1-17.
    7. Choi, Kanghwa, 2017. "Multi-period efficiency and productivity changes in US domestic airlines," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 18-25.
    8. Tanrıverdi, Gökhan & Merkert, Rico & Karamaşa, Çağlar & Asker, Veysi, 2023. "Using multi-criteria performance measurement models to evaluate the financial, operational and environmental sustainability of airlines," Journal of Air Transport Management, Elsevier, vol. 112(C).
    9. Veysi ASKER & Temel Caner USTAÖMER, 2022. "Financial Efficiency Analysis the Malmquist TFP Method An Application on Star Alliance Member Airlines," Bingol University Journal of Economics and Administrative Sciences, Bingol University, Faculty of Economics and Administrative Sciences, vol. 6(2), pages 39-57, December.
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    11. Matthias Klumpp, 2017. "Do Forwarders Improve Sustainability Efficiency? Evidence from a European DEA Malmquist Index Calculation," Sustainability, MDPI, vol. 9(5), pages 1-33, May.
    12. Chang, Young-Tae & Lee, Suhyung & Park, Hyosoo (Kevin), 2017. "Efficiency analysis of major cruise lines," Tourism Management, Elsevier, vol. 58(C), pages 78-88.
    13. Yu, Ming-Miin & Chang, Yu-Chun & Chen, Li-Hsueh, 2016. "Measurement of airlines’ capacity utilization and cost gap: Evidence from low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 186-198.
    14. Yu, Ming-Miin & Chen, Li-Hsueh, 2023. "Productivity change of airlines: A global total factor productivity index with network structure," Journal of Air Transport Management, Elsevier, vol. 109(C).
    15. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2022. "Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5052-5079, April.

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