Investment Analysis of Airline Companies in Pandemic
A Comparative Study of CEA and UAL
These authors contributed equally.
- 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.
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 -