Article: An empirical study of the world's oldest airline company who filed bankruptcy during COVID-19 pandemic Journal: International Journal of Knowledge Management in Tourism and Hospitality (IJKMTH) 2024 Vol.3 No.3 pp.220 - 244 Abstract: The financial indications that Avianca Holdings SA neglected or failed to control between 2013 and 2019 were the subject of this study. Based on secondary information gathered from the company's annual reports, an exploratory study was conducted. The company's annual reports were multi-dimensionally examined using methods and instruments for financial analysis. The findings of this study show that various serious problems existed within the corporation and that the COVID-19 epidemic was not the only factor that contributed to the bankruptcy of the oldest airline in the world. The financial statements of Avianca Holdings SA revealed 15 troubling indicators that the corporation had ignored. Since the past seven years, all 15 indicators, including total operating revenue, total operating expenses, operating profit, profit after tax, and retained earnings, have been significantly negative. Amid the chaos caused by the COVID-19 pandemic, the aviation industry took the most blow. As a result, the oldest airline in the world, which had already been suffering from financial difficulties for the previous seven years, chose to declare bankruptcy. Inderscience Publishers - linking academia, business and industry through research

Title: An empirical study of the world's oldest airline company who filed bankruptcy during COVID-19 pandemic

Authors: Reena Agrawal; Rohit Raj; Vimal Kumar; Ajay Jha

Addresses: Jaipuria Institute of Management, Lucknow, 226010, India ' Department of Information Management, Chaoyang University of Technology, Wufeng, Taichung 41349, Taiwan ' Department of Information Management, Chaoyang University of Technology, Taichung, 41349, Taiwan ' Department of Operations Management, Jaipuria Institute of Management, Lucknow, 226010, India

Abstract: The financial indications that Avianca Holdings SA neglected or failed to control between 2013 and 2019 were the subject of this study. Based on secondary information gathered from the company's annual reports, an exploratory study was conducted. The company's annual reports were multi-dimensionally examined using methods and instruments for financial analysis. The findings of this study show that various serious problems existed within the corporation and that the COVID-19 epidemic was not the only factor that contributed to the bankruptcy of the oldest airline in the world. The financial statements of Avianca Holdings SA revealed 15 troubling indicators that the corporation had ignored. Since the past seven years, all 15 indicators, including total operating revenue, total operating expenses, operating profit, profit after tax, and retained earnings, have been significantly negative. Amid the chaos caused by the COVID-19 pandemic, the aviation industry took the most blow. As a result, the oldest airline in the world, which had already been suffering from financial difficulties for the previous seven years, chose to declare bankruptcy.

Keywords: financial distress; bankruptcy; aviation industry; vertical analysis; horizontal analysis; ratio analysis; trend analysis.

DOI: 10.1504/IJKMTH.2024.136331

International Journal of Knowledge Management in Tourism and Hospitality, 2024 Vol.3 No.3, pp.220 - 244

Received: 26 Apr 2023
Accepted: 07 May 2023
Published online: 30 Jan 2024 *

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Title: An empirical study of the world's oldest airline company who filed bankruptcy during COVID-19 pandemic

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