Factors Affecting Profitability In The Airlines Industry An Empirical Study On Major Airlines In Sub-saharan Africa

This study examines the airline-specific, industry-specific and macro-economic factors affectingrnairline profitability for the three airlines in Sub-Saharan Africa, covering the period of 2003-2013.rnTo this end, the study adopts a mixed methods research approach by combining financial reports andrnfurther documentary analysis for qualitative information. The findings of the study show that loadrnfactor and exchange rate fluctuation have statistically significant and positive relationship withrnairlines’ profitability. On the other hand, variables like leverage and liquidity have a negative andrnstatistically significant relationship with airlines’ profitability. However, the relationship for airlinernsize, sales growth and major incidents/shocks is found to be statistically insignificant. The studyrnsuggests that focusing and reengineering the airlines operations alongside the key internal driversrncould enhance the profitability. Moreover, airlines in sub-Saharan Africa should not only bernconcerned about internal structures and policies, but they must also consider the macroeconomicrnenvironment in developing business strategies to improve their financial performance or profits

Get Full Work

Report copyright infringement or plagiarism