Financial Statement Analysis of Airlines: Case Study Finnair, KLM Royal Dutch, and Lufthansa
Yusuf, Amaal (2022)
Yusuf, Amaal
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120827306
https://urn.fi/URN:NBN:fi:amk-2022120827306
Tiivistelmä
This thesis examines the financial performance of three airlines: Finnair, Lufthansa, and KLM Royal Dutch airlines. The study covers the years 2019-2022, and due 2022 being the current year the author will be examining the first three quarters for this year. The Covid-19 outbreak caused massive losses to industries and businesses all around the globe, including the airline industry. The author has selected this research topic to evaluate the financial performance of these airlines pre and post the pandemic. To compare the airlines and their performance with the chosen year financial analysis methods were utilized in the study.
The theoretical framework provides the required information to better grasp the financial methods for performance analysis. The quantitative technique and desktop research were chosen as the research methods for this study. The author starts the analysis of the financial performance in chapter 4. The comparison of the three airlines is given in the next chapter, with a focus on the airline’s liquidity and profitability.
All three airlines were hit with losses in the year 2020. Due to the pandemic and the continued lockdown and travel restrictions in the following year, it has made it harder for the airlines to re-cover their pre normal levels by the end of 2021. Ratios of profitability and liquidity have been marginally influenced in the given years. Despite passenger numbers increasing in 2021 first three quarters, the pandemic and related travel restrictions continue to have a detrimental impact on air traffic in the first three quarters of 2022 for the airlines Finnair, KLM, and Lufthansa.
The theoretical framework provides the required information to better grasp the financial methods for performance analysis. The quantitative technique and desktop research were chosen as the research methods for this study. The author starts the analysis of the financial performance in chapter 4. The comparison of the three airlines is given in the next chapter, with a focus on the airline’s liquidity and profitability.
All three airlines were hit with losses in the year 2020. Due to the pandemic and the continued lockdown and travel restrictions in the following year, it has made it harder for the airlines to re-cover their pre normal levels by the end of 2021. Ratios of profitability and liquidity have been marginally influenced in the given years. Despite passenger numbers increasing in 2021 first three quarters, the pandemic and related travel restrictions continue to have a detrimental impact on air traffic in the first three quarters of 2022 for the airlines Finnair, KLM, and Lufthansa.