The impact of COVID-19 pandemic on air transport: the case of Virgin Australia airlines

This research study scrutinized the financial signs that were overlooked or were failed to be controlled by Virgin Australia from 2012 through 2019. Empirical research was done based on secondary data retrieved from the annual reports of the company. The annual reports of the company were analyzed in a multi-dimensional manner using financial analysis tools and instruments. The finds of this research demonstrate that it was not merely the Covid-19 pandemic, which pushed the world’s oldest airlines into bankruptcy but there existed numerous critical issues within the company. Virgin Australia’s financial statements revealed fifteen alarming indicators which were overlooked by the company. Right from operating revenue, operating expenses, profit margins, to current and liquid ratio all eleven indicators were hugely adverse since last eight years continuously. The outbreak of the Covid-19 pandemic forced lockdown across nations and the aviation industry was the worst hit amid the global turmoil. This proved fatal for Australia’s second-largest carrier which was already ailing from financial distress for the last several years and thus the company had to file bankruptcy.