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

<p>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 reporting, the disclosure within the airline sector has been historically limited. This paper explores the impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK. Methodology 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 employed 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.OriginalityThe 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.</p>