IDEAS home Printed from https://ideas.repec.org/h/eme/aiaezz/s2212-160920240000011009.html
   My bibliography  Save this book chapter

Effects of the COVID-19 Pandemic and Related Policies on Airport Short-Term Costs

In: Airlines and the COVID-19 Pandemic

Author

Listed:
  • Yushuo Yang
  • Patrick S. McCarthy

Abstract

This paper analyzes the impacts of COVID-19 and related policies on airport short-run costs and decomposes the percentage changes in total and average variable costs between pre-COVID-19 and COVID-19 periods. Data for the analysis are a panel of 50 medium and large US airports from 2012 to 2021. COVID-19 measures include COVID-19 cases and deaths. COVID-19-related policies include state-level face mask and COVID-19 vaccine mandates. Based upon a short-term multi-output translog cost function with three positive outputs (departures, non-aeronautical revenue, and workload), three associated negative attributes (delay, congestion, and air pollution), COVID-19 measures and policies, the analysis has three main conclusions: (1) A 1% increase in COVID-19 cases leads to a 0.077% increase in total operating costs. State-level face mask and COVID-19 vaccine mandates increase total operating costs by 15.9% and 16.8%, respectively; (2) COVID-19 and related policies increase airport total operating costs through contractual services costs; and (3) the cost decomposition finds that a 1 million increase in COVID-19 cases results in a 109% increase in average variable costs, while the time/technological progress effect leads to a decrease of 87% compared to the pre-COVID-19 period. Face mask and vaccine mandates increase the average variable costs by 8.91% and 4.19%, respectively. The positive output total effects range from 3.46% to 7.99%. The effects of input prices and negative attributes are relatively small.

Suggested Citation

  • Yushuo Yang & Patrick S. McCarthy, 2024. "Effects of the COVID-19 Pandemic and Related Policies on Airport Short-Term Costs," Advances in Airline Economics, in: Airlines and the COVID-19 Pandemic, volume 11, pages 215-245, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aiaezz:s2212-160920240000011009
    DOI: 10.1108/S2212-160920240000011009
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920240000011009/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920240000011009/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S2212-160920240000011009/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S2212-160920240000011009
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/S2212-160920240000011009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:aiaezz:s2212-160920240000011009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.