Forecasting & Impact of Covid-19 on Airline Sector: A Case Study of Turkey

Muddasır M., Afşar A.

Journal of Business, Economics and Finance, cilt.11, sa.3, ss.143-152, 2022 (Hakemli Dergi)

Özet

Purpose- An infectious virus called COVID-19 originated in China spread over the globe in a short time and became a pandemic. The aim of this study is to determine the relationship between the COVID-19 and the airline companies in Turkey. Thus, we went over daily stock prices of the companies as well as daily COVID-19 cases reported across the nation. As a result, two companies were chosen among all of them. From 11 March 2020 to 30 May 2022, we retrieved data of daily stock prices, COVID-19 cases and COVID-19 deaths recorded.

Methodology- Regression analysis was used to determine the association between COVID-19 and prices. The results were as expected; both companies demonstrated significance, and we concluded that they responded to the COVID-19. The second aim of the study is to utilize regression analysis to predict, between June 2022 and June 2023, both the number of verified COVID-19 cases and the prices of Airline companies.

Findings- The results were as expected; both companies were found significant, and we concluded that they responded to the COVID-19. By June 30, 2023, it is likely to see more verified cases if the corona virus spread rate in Turkey does not change. Data for COVID-19 instances will differ depending on the transmission rate. Briefly stated, COVID-19 cases and BIST 100 Travel Sector cases have a direct relationship. Because of a rise in COVID-19 vaccinations, both businesses exhibit an increasing tendency.

Conclusion- The Travel Sector in BIST 100 also exhibits a favorable correlation with COVID-19 cases. But both businesses exhibit a bullish or rising tendency as a result of vaccination which started in 2021. To stop the corona virus from spreading, precautions should be taken, such as keeping a safe social distance, washing hands regularly, and avoiding unwanted facial contact.