The effect of financial performance on aviation carbon emissions

Using daily flight data and annual financial indicators, this paper investigates the effect of carriers’ financial performance, measured by profitability, growth, and operational capacity, on aviation carbon emissions. The findings reveal that while increased profitability does not immediately reduce total emissions, it can slow the rate of carbon growth. In terms of carbon efficiency, growth capacity enhances emission efficiency, whereas a decline in operational capacity significantly degrades it. Additionally, carriers with different service patterns, geographic locations, and market conditions exhibit varying sensitivities to financial performance. Notably, full-service carriers in the Americas and developed markets produce higher emissions in response to the same improvements in profitability or growth.