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

Journal article


Wu, S., Kremantzis, M. D., Tanveer, U., Ishaq, S., O'Dae, X. and Jin, H. 2024. Performance evaluation of the global airline industry under the impact of the COVID-19 pandemic: A dynamic network data envelopment analysis approach. Journal of Air Transport Management. 118, pp. 1-17. https://doi.org//10.1016/j.jairtraman.2024.102597
AuthorsWu, S., Kremantzis, M. D., Tanveer, U., Ishaq, S., O'Dae, X. and Jin, H.
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.

KeywordsDynamic network DEA; Global airline industry; Covid-19 pandemic ; Efficiency
Year2024
JournalJournal of Air Transport Management
Journal citation118, pp. 1-17
PublisherElseiver
ISSN1873-2089
Digital Object Identifier (DOI)https://doi.org//10.1016/j.jairtraman.2024.102597
Web address (URL)https://www.sciencedirect.com/science/article/pii/S0969699724000620
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Output statusPublished
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Online09 May 2024
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Deposited22 May 2024
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