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Literature ReviewStudent's NameInstitution AffiliationLiterature ReviewIntroduction Airline income is elastic and can be affected by many factors including financial crisis, recession, terrorist attacks, and changing trade patterns. Financial crisis like the Asian financial crisis affect the airline's earning power and financial health resulting in enhanced volatility of airline stock market returns. Recessions like the 2008-2009 recession in the United States led to the increase in fuel prices, reduced air ticket sales, and low airline flight demands. Many Americans were in a financial shock and could no longer afford leisure travel and this was a blow on airlines because they could no longer stay afloat without customers. To manage the crisis, mergers were organized thereby reducing the number of airlines by half. On the other hand, changing trade patterns like The Arab Spring have greatly affected airlines while terrorist attacks on airplanes instill fear on customers, there is significant reduction in leisure travel, and
this has a negative effect on airlines. This work will focus on the effect of Coronavirus as a worldevent on airlines and the industry in general. Research questionWhat are the financial and operational implications of historical and present world events on the airline industry?Purpose of the reviewTo investigate whether different global events influence the airline industry companies' financial or operational performance.Motivation for the study and the research questionsThe motivation for the study by Zarb (2016) was to find any financial improvements in the airline industry after the impact of the 2008 to 2009 recession. Airline financial health and earning power were highly affected and this study's research question was "whether earning power and financial health in the airline industry improved since the 2008-2009 recession (Zarb 2016, P 56). The study by Pearce (2012) was also motivated by the 2008 to 2009 recession and his study seeks to understand the state of air transport since the recession. Therefore, the research question of his study is "have the state of air transport markets and the airline industry improved or worsened following the recession of 2008-09? (Pearce, 2012 P 3)"Button, Martini, & Scotti (2016) were motivated by the trade patterns during the Arab Spring. The authors wanted to understand the impact that the new trade patterns were having on the transport industry between 1997 and 2013. Therefore, their research question was "what is the impact of the Arab Spring in North Africa and the Levant on international trade in air transportation within the region (Button, Martini & Scotti, 2016 P 532)."

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