Exploring CSR and financial performance of full-service and low-cost air carriers

We analyze the influence of corporate social responsibility (CSR) toward the financial performance of low-cost (LCC) and full-service air carriers (FSC). The fixed-effect model of panel data analysis is applied for the study period from 2006 to 2015. FSCs improve financial performance via environmental and social CSR activities; compared to LCCs via increased firm size and environmental CSR activities. Firm age significant negatively influences LCCs, whereas leverage shows mixed significant influence toward FSCs. CSR increases current and expected financial performances for FSCs and LCCs, respectively. FSCs and LCCs, with further environmental participation, could increase CSR scores and enhance financial performance.