Analysis And Control Of Financial Risks In The Aviation Industry

Since the 1980s,China's economic growth in all walks of life is very rapid,residents' daily travel and business trade has promoted the development of China's aviation industry,can be said to be at a time of prosperity.But the aviation industry itself is a more fragile industry,especially civil aviation,which is vulnerable to natural disasters,changes in oil prices,economic policies and other aspects.For example,the SARS outbreak in 2003 hit the aviation industry hard,reducing passenger turnover by as much as half,and the outbreak of novel coronavirus pneumonia in 2020 is bound to hit the airline industry again.In addition,with the increasing number of domestic and foreign aviation enterprises and the development of high-speed rail industry,so that airlines compete to follow the low-cost mode of operation,but as a capitalintensive enterprise,in order to seize the market to reduce profit margins,increase the ratio of capital to debt is obviously not a wise choice.The financial risks arising from this are becoming more and more prominent.H Airlines as a large domestic private airline,the existence of financial risks in the aviation industry has a certain degree of research significance.The paper first reviews the research results of financial risk analysis by domestic and foreign researchers over the years,and expounds the progress of the research on the financial risk of airlines.Secondly,the financial risks prevalent by domestic airlines are introduced,and they are divided into the risks of the external environment and the risks of the enterprises themselves.Based on the above theoretical basis and industry research,the paper has launched a case study of H Airlines.The paper selects the financial data of H Airlines from 2016 to 2018,first uses the financial analysis method to identify the financial risks that May exist in several aspects of H Airlines,and analyzes and evaluates the risk causes of the risk sons and factors existing in the company.Finally,in order to improve the risk management of H airline,the various risk points of H airlines are put forward to optimize the production and operation level of H airlines,to tap out the competitive advantage of enterprises,to help enterprises make reasonable investment and financing decisions,from the source to solve the management of H airline financial risks,to ensure the company's healthy and long-term development.