Financial Performance of Air Transport Operators in the Conditions of Digital Transformation Processes

Purpose: The study aims to examine the financial performance of air passenger carriers in the case of a developing country with transition economy like Bulgaria. It also examines both the main trends in the digital transformation processes of the aviation sector and the obstacles that hinder the widespread implementation of information and communication technologies in the sector. Methodology: Through regression modelling, it is identified which financial performance indicators most strongly influence the digital transformation process of air passenger carriers. Results: The results of the study show that Bulgarian aviation operators are not capable to cover their short-term liabilities and are strongly dependent on their creditors, especially in terms of exogenous shocks like COVID-19 pandemics, political crisis, ongoing military conflicts in Ukraine and uncertain business environment. The country ranks on last place according to the values of DESI index in comparison to EU average levels in terms of digital skills of transport workers, e-commerce, and deployment of ICT. Practical implications: The implications of the study could serve as basis for future research in the field of financial performance of other modes of transport or to be used for examining the air transport of countries with similar political and economic characteristics like Bulgaria. Paper type: Research paper.