Did the Covid-19 Crisis Damage Airlines with Aggressive Growth Strategies More? : exploring the 2020 recession
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- Master Thesis 
This thesis aims to explore how aggressive strategies affected airline companies in the covid- 19 pandemic. Using the sustainable growth model, the thesis assesses which business decisions that affect companies’ performance in the time of crisis. The thesis also sets out to research warning signs that can help predict how companies will perform during situations of financial distress. The difference between failed and recovered airline companies became visible in the assessment of the four growth levers Profit Margin, Earnings Retention Ratio, Asset Turnover and Financial Leverage. The results indicate that airlines with a more aggressive strategy have a harder time recovering from the covid-19 pandemic if they recover at all. The analysis revealed that airlines with more conservative strategies and a stronger focus on stability led to a lower Earnings Retention Ratio and stronger Profit Margins. For the failed airlines a high Earnings Retention Ratio was a common denominator which told us that their focus was on expansion and growth of the airline. These airlines would benefit from building a more solid base before focusing on growth.