Financial Performance Analysis Using the Merec-Based Cobra Method: An Application to Traditional and Low-Cost Airlines

The aim of this study is to examine the impact of the COVID-19 pandemic on the financial performance of traditional and low-cost airlines. In this context, the financial performance of 32 traditional and 14 low-cost airlines operating in different regions of the world was analysed using the Merec-based Cobra method for the before and during COVID-19 pandemic period (2018–2021). First, the financial ratios of the airlines were weighted using the Merec method, then the financial performance ranking of the airlines was conducted using the Cobra method. According to the results of the Cobra method, Ryanair (FR) was found to have the best financial performance in 2018 and 2020. Meanwhile, Allegiant Travel (G4) led the way in 2019, and Thai Airways (TG) came out on top in 2021. According to the analysis results, low-cost airlines such as Southwest Airlines (WN), Wizz Air (W6), Allegiant Air Travel (G4), and Ryanair (FR) showed better performance than a significant portion of traditional airlines in the period before the COVID- 19 pandemic. In contrast, during the COVID-19 pandemic, low-cost airlines such as Spring Airlines (9C), Air Arabia (G9), Cebu Air (5J), Easyjet (U2), and Jetblue Airways (B6) demonstrated worse performance than a significant portion of traditional airlines.