Performance evaluation of the global airline industry under the impact of the COVID-19 pandemic: A dynamic network data envelopment analysis approach

Sijin Wu, Marios Dominikos Kremantzis*, Umair Tanveer, Shamaila Ishaq, Xianghan O'Dea, Hua Jin

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

Abstract

The COVID-19 pandemic posed unprecedented challenges to the airline industry, necessitating a focus on maintaining high efficiency for profitability. This study assesses the efficiency of 26 international airlines from 2019 to 2022 using a dynamic network data envelopment analysis (DNDEA) methodology. The model accounts for the dynamic effect between two consecutive periods and incorporates an internal structure to evaluate airline performance across multiple dimensions. It enables the assessment of overall, period-specific, and stage-specific efficiencies. The findings reveal that while overall efficiency is moderately high on average, no airline achieved full efficiency during the pandemic. Efficiency decreased notably from 2019 to 2020, with a partial recovery but not a return to pre-pandemic levels by 2022. Operational performance remains satisfactory and stable, while service and financial performance exhibit lower efficiency, especially among low-cost airlines compared to fullservice counterparts. Additionally, the study explores airlines’ environmental impact by considering greenhouse gas emissions. Comparative analysis with a dynamic DEA model without internal structure highlights theoretical contributions, and the study offers managerial insights for airline leaders and policymakers.
Original languageEnglish
Article number102597
Pages (from-to)1-17
JournalJournal of Air Transport Management
Volume118
DOIs
Publication statusE-pub ahead of print - 9 May 2024

Bibliographical note

Publisher Copyright:
© 2024

Keywords

  • Dynamic network DEA
  • Global airline industry
  • Covid-19 pandemic
  • Efficiency

Fingerprint

Dive into the research topics of 'Performance evaluation of the global airline industry under the impact of the COVID-19 pandemic: A dynamic network data envelopment analysis approach'. Together they form a unique fingerprint.

Cite this