A Comparative Analysis of Financial Performance Between Full-Service and Low-Cost Airlines: Evidence from the 2022-2024 Period

This study aims to comparatively analyze the financial performance differences between full-service carriers (FSC) and low-cost carriers (LCC) over the 2022-2024 period. The economic fluctuations experienced by the global aviation industry during the post-COVID-19 recovery process have revealed the need to re-evaluate the resilience and profitability strategies of both business models. In this context, financial data of 13 FSC and 13 LCC selected from different regions of the world were analyzed. Using TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method, one of the multi-criteria decision-making techniques, performance scores were calculated based on liquidity, profitability, efficiency and financial stability indicators of each airline. The findings reveal that LCC operating in Europe, in particular, achieved generally better results in terms of financial performance compared to FSC during the 2022–2024 period. Despite benefiting from government support, many FSC fell behind in terms of efficiency and profitability indicators. Additionally, the results emphasize the importance of a multi-dimensional evaluation approach that considers not only financial ratios but also contextual factors such as geographical location, operational flexibility, and the post-pandemic recovery process.