Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

Investment Analysis of Airline Companies in Pandemic

A Comparative Study of CEA and UAL

Authors
Zeyu Gu1, *,a, , Xiaohan Liang2, *, c, , Yanman Yu3, *, b,
1Department of Science, Xi’an Jiaotong-liverpool University, Suzhou,215007,China
2Department of Economics, University of Warwick, Coventry, CV4 7AL, UK
3School of Information Engineering, Hangzhou Dianzi University

These authors contributed equally.

*Corresponding author. Email: aZeyu.Gu18@student.xjtlu.edu.cn
Corresponding Authors
Zeyu Gu, Xiaohan Liang, Yanman Yu
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.179How to use a DOI?
Keywords
Airline companies; Investment analysis; regression model; hypothesis test
Abstract

Due to the outbreak of COVID-19, the aviation industry was revealed highly vulnerable to such a crisis, and the stock prices of worldwide airline companies all faced significant declines. The airline companies would have to adapt themselves to a world with lasting impacts from the pandemic to recover from the decline. Government and investors would also need new approaches and precautions to invest or intervene. This paper employs a regression model, hypothesis test, and moving average to analyze the financial performances of United Airlines (UAL) and China Eastern Airline(EAL) before and during the COVID, using stock prices and net profits as key indicators. It can be found that after the onset of the pandemic in 2020, two completely different strategies would lead to two different outcomes. According to the seasonal distribution of the stock prices of UAL and CEA in an unknown period and the characteristics of each airline, the model of seasonal effect is adopted to analyze the market share of the two airlines in 2021. Finally, through the possible errors in the prediction, it is found that the errors were small before the pandemic and became large immediately after the pandemic. It can be concluded that in the period of severe crisis such as COVID-19, government intervention affected the normal development of the airline companies. The paper would give suggestions on government interventions, firm responses, and investor decisions accordingly.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.179How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Zeyu Gu
AU  - Xiaohan Liang
AU  - Yanman Yu
PY  - 2021
DA  - 2021/12/15
TI  - Investment Analysis of Airline Companies in Pandemic
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1103
EP  - 1109
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.179
DO  - 10.2991/assehr.k.211209.179
ID  - Gu2021
ER  -