THE INFLUENCE OF COST STRUCTURE, EFFICIENCY, AND AIRLINE TYPE ON THE FINANCIAL PERFORMANCE OF AIRLINES

This study aims to analyze the effect of cost structure, efficiency, and airline type
on the financial performance of airlines, which is proxied by Return on Assets
(ROA), Return on Investment (ROI), Return on Equity (ROE), Net Profit Margin
(NPM), and Gross Profit Margin (GPM). The research sample is publicly listed
airlines with an observation period of 2020-2024. The sample was determined using
purposive sampling and resulted in 30 companies with a total of 150 observations
(balanced panel data). The data was analyzed using panel data regression. The
results show that cost structure affects financial performance, but the effect is partial
because not all cost components affect all profitability indicators and the direction
of the effect differs between indicators. Efficiency (the ratio of operating costs to
operating income) has a negative effect on NPM and GPM, but no effect on ROA,
ROI, and ROE. Meanwhile, airline type (FSC vs. LCC) has no effect on ROA, ROI,
ROE, NPM, or GPM. These findings indicate that airline financial performance is
determined more by the effectiveness of cost structure management and operational
efficiency than by differences in airline business models.