Airlines with more women found to be more efficient

The aviation sector was one of the hardest hit by restrictions being implemented during the COVID pandemic. A study led by Oberta de Catalunya (UOC) analyzed the efficiency of a group of 45 airlines before and after the crisis. In 2019 and 2022.

“Our research shows that despite the unprecedented crisis caused by the pandemic, airlines that increase gender diversity in leadership have adapted to the challenges better,” explained Professor Pere Sue Sanchez, a co-author of the study and leader of the UOC’s Economics and Business Sustainability, Management and Transport Research Group (SUMAT). “Women have had a more positive impact than men in ensuring that airlines are efficient after the pandemic,” he added.

The study, which also involved the University of Edinburgh, is published in the Journal of Air Transport Management. Indicators such as the number of seats occupied, performance of operability, and sustainability were included to measure efficiency.

According to a team of researchers, if the 45 airline groups analyzed are to increase the proportion of women on the board to at least 25%, the target set by the Airline Association IATA could increase by 1.9% in terms of capacity management (available flights and seats), and up to 3.2% in other such as Variel.

“These figures take into account that if a 50% representative target is achieved, they will be higher,” said Laura Lamolla, a co-author of the study, as an associate professor and researcher in the UOC’s SUMAT group.

Diversity improves decision making

The team selected a total of 45 airline groups representing different regions. There are 15 in the US, 12 in Europe, and 18 in the Asia-Pacific region. The sample consisted of a variety of company sizes and business models, including full-service global airlines such as American Airlines and low-cost carriers. The main criteria for selecting 45 companies was the availability of executive team gender diversity data obtained from a specialized database.

“The average percentage of women in sectors around the world is 18% on board and 15% on management, while some airlines are leading the way, such as Vueling, which has 71% of women and 40% on management,” said Suau-Sanchez.

The findings reveal that airlines with increased gender diversity on boards and executive teams have increased efficiency before and after the community crisis.

“The observed resilience can be explained by the diversity of perspectives in decision-making. For airlines with more women, this promoted a more innovative and balanced approach during a period of great uncertainty. These airlines considered not only the immediate impact, but also the long-term impact.

Similar results in other industries

To add to their analysis, the team also sought the opinions of senior management positions, executive committees and board people in different regions of airlines and different business models. A total of 24 people were contacted: 16 women and 8 men. No one responded, but this was true in a similar study in the aviation sector.

“It is true that other female leaders have not responded to us either. When they did that in the past, it can demonstrate the influence of the “token” theory. This has kept a low profile on certain issues in order to avoid conflict in male-dominated contexts,” suggested Suau Sanchez.

The results obtained from this study are in line with studies conducted in other industries. This also demonstrates that gender diversity leads to better business outcomes. The next step for the UOC team is to better understand the specific reasons for these outcomes within the aviation sector.

“Interviews and literature confirm that gender diversity brings diversity, experience and skills to decision-making, allowing businesses to address complex issues with more innovative and balanced solutions,” says Lamolla.