Have Earning Power and Financial Health in the Airline Industry Improved Since the 2008-2009 Recession?

Airline companies worldwide operating in a challenging and daunting environment. The financial crisis of 2008-2009 did not leave the airline industry unscathed. In a previous study (Zarb, 2010), the author examined whether earning power affected the financial health of airline companies and whether there were any differences in the earning power of U.S. and non-U.S. airline companies. This study examines earning power and financial health in the airline industry before and after the financial crises of 2008-2009, and investigates whether the earning power and financial health in the airline industry has improved since the 2008-2009 recession. The findings of this study show that net profit margin, current ratio, total asset turnover, and earnings before tax are statistically significant with respect to earning power in airline companies. The results of this study further demonstrate that earning power and financial health in the airline industry did actually improved since the 2008-2009 recession.