Analysis of financial support for air carriers to counteract the effects of the Covid-19 pandemic, with particular emphasis on the European Union

Purpose: The aim of the article is to analyse the actions taken in individual regions and countries in the field of state aid for air carriers and to verify its impact on counteracting the effects of the crisis caused by the COVID-19 pandemic, in particular in the European Union. Design/methodology/approach: The research was mainly based on the comparative analysis of the International Air Transport Association, European Commission and selected air carriers’ data. Findings: The diversity of forms and values of public aid between regions of the world was identified. No links were found between the volume of financial support and the pace of market recovery, both globally and within the European Union. In EU, private-owned unsubsidised entities have been recovering faster than state-owned so-called ‘national carriers’ which received substantial amount of public funds. Research limitations/implications: The research was based on limited number of entities and on limited number of operational and financial indicators. Some data comparisons are burdened with error due to inconsistency between reporting (fiscal) periods of selected air carriers. Originality/value: The research summarizes and describes the different forms of public aid implemented for the air carriers and shows ineffectiveness of government support granted for these entities.