The impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK

Abstract

Purpose The COVID-19 pandemic has had an unprecedented impact on almost all sectors, but the airline industry has been globally most affected. Although recent years have witnessed an increase in attention to corporate social responsibility (CSR) reporting, the disclosure within the airline sector has been historically limited. This paper aims to explore the impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK. Design/methodology/approach The paper applies content, textual and financial analysis to 16 company-year observations covering two fiscal years, 2018 and 2020, of eight airlines operating in the UK. A coding structure is based on the Global Reporting Initiative guidelines. NVivo is used for textual comparative analysis. Findings The research reveals that social disclosures exceeded environmental disclosures in the period before and during COVID-19. However, the pandemic has shown a significant increase in environmental rather than social disclosures. The study evidences the dominating themes of social and environmental disclosure, showing changes between 2018 and 2020. The study finds the extent of negative impact of COVID-19 on airlines’ financial performance. A period of crisis prompts companies to release more information, with a positive correlation between higher debt levels and increased disclosure. Originality/value The findings complement the emerging empirical evidence on the impact of COVID-19 on CSR reporting and demonstrate how challenges posed by the COVID-19 crisis affect the disclosure practices in the airline industry.

Corporate Social Responsibility Trends in the Airline Industry: A Bibliometric Analysis

“…In this section, we shed light on the dynamic challenges and innovative practices shaping CSR in the airline industry. The airline industry's exploration of corporate social responsibility (CSR) has faced a diverse range of challenges, especially heightened by the widespread impact of the global COVID-19 pandemic [60][61][62][63][64]. A primary challenge lies in the rapid integration of health and safety measures within CSR frameworks, necessitating airlines to not only reimagine passenger experience but also to ensure these measures are financially sustainable in the long term.…”