The effect of Covid 19 on financial performance of airline companies: The case of Turkish Airlines and Pegasus

Airline passenger transportation is frequently preferred because it is fast, reliable, comfortable and not an alternative for long distances. The airline companies' flight arrangements according to the wishes and expectations of the passengers, the sale of discounted tickets, and the fact that the prices of the substitute vehicles are relatively close to the prices of the airline tickets are important determinants of the passengers' preference for air transportation. The civil aviation sector continues to grow every year as a result of the construction of new airports, the opening of new flight points by airline companies and more flights. With the spread of Covid 19 to other continents, which started in China, there was a serious pause in the transportation sector all over the world. State governments have almost completely stopped transportation, except for urgent needs, in order to prevent the spread of the Pandemic. Since individuals do not travel, transportation sector employees were unemployed, income could not be obtained because transportation vehicles could not be used, and companies suffered significant losses during the Pandemic. Airline passenger transport is also one of the sectors that have been adversely affected by the Pandemic. During this period, airline companies stopped their activities except for cargo transportation. As a result of increasing expenses and decreasing revenues, some companies went bankrupt. Covid 19 has caused significant damage to the entire economy and has also caused significant damage in the civil aviation sector. From this point of view, the financial situation of companies operating in the airline passenger transportation sector in Turkey during the Covid 19 period is examined in this study. Financial statement data of Turkish Airlines and Pegasus Airlines for the period 2019-2021 are used. In order to evaluate the effect of the pandemic on the financial performance of the companies, the financial statement data for the period before and after the pandemic are analyzed with the comparative table analysis method. It has been determined that the costs of the companies have increased, their revenues have decreased, the number of flights and passengers has decreased and they have made losses.