The effect of financial performance on aviation carbon emissions

Shuai Yue, Weijun Liao, Qing Ji and Chunan Wang

Journal of Air Transport Management, 2025, vol. 126, issue C

Abstract: Using daily flight data and annual financial indicators, this paper investigates the effect of carriers’ financial performance, measured by profitability, growth, and operational capacity, on aviation carbon emissions. The findings reveal that while increased profitability does not immediately reduce total emissions, it can slow the rate of carbon growth. In terms of carbon efficiency, growth capacity enhances emission efficiency, whereas a decline in operational capacity significantly degrades it. Additionally, carriers with different service patterns, geographic locations, and market conditions exhibit varying sensitivities to financial performance. Notably, full-service carriers in the Americas and developed markets produce higher emissions in response to the same improvements in profitability or growth.

Keywords: Aviation carbon emissions; Carbon reduction; Financial performance; Corporate finance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:126:y:2025:i:c:s0969699725000638

DOI: 10.1016/j.jairtraman.2025.102800

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