Browsing by Author "Menta, Fikre"

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    Factors Affecting Profitability in the Airlines Industry: an Empirical Study on Major Airlines in Sub-Saharan Africa
    (Addis Ababa University, 200-06) Menta, Fikre; Gebrehiwot, Gebremedhin
    This study examines the airline-specific, industry-specific and macro-economic factors affecting airline profitability for the three airlines in Sub-Saharan Africa, covering the period of 2003-2013. To this end, the study adopts a mixed methods research approach by combining financial reports and further documentary analysis for qualitative information. The findings of the study show that load factor and exchange rate fluctuation have statistically significant and positive relationship with airlines’ profitability. On the other hand, variables like leverage and liquidity have a negative and statistically significant relationship with airlines’ profitability. However, the relationship for airline size, sales growth and major incidents/shocks is found to be statistically insignificant. The study suggests that focusing and reengineering the airlines operations alongside the key internal drivers could enhance the profitability. Moreover, airlines in sub-Saharan Africa should not only be concerned about internal structures and policies, but they must also consider the macroeconomic environment in developing business strategies to improve their financial performance or profits