TY - JOUR
T1 - Performance evaluation of the global airline industry under the impact of the COVID-19 pandemic
T2 - A dynamic network data envelopment analysis approach
AU - Wu, Sijin
AU - Kremantzis, Marios
AU - Umair, Tanveer
AU - Ishaq, Shamaila
AU - O'Dea, Xianghan
AU - Jin, Hua
N1 - Publisher Copyright:
© 2024
PY - 2024/7
Y1 - 2024/7
N2 - 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 full-service 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.
AB - 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 full-service 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.
UR - http://www.scopus.com/inward/record.url?scp=85192270956&partnerID=8YFLogxK
U2 - 10.1016/j.jairtraman.2024.102597
DO - 10.1016/j.jairtraman.2024.102597
M3 - Article
SN - 0969-6997
VL - 118
JO - JOURNAL OF AIR TRANSPORT MANAGEMENT
JF - JOURNAL OF AIR TRANSPORT MANAGEMENT
M1 - 102597
ER -