THE EFFECT OF CORONAVIRUS PANDEMIC ON THE GOING CONCERN OF AIRLINE AND HOSPITALITY INDUSTRIES

Thanh Bui
Wilkes University, PA

Sang Tran
Maryville University, MO

Hoa Pham
Management Consultant

ABSTRACT

Coronavirus disease (COVID-19) originally emerged in Asia in 2019. The virus has
spread to almost all continents leading to negative social and economic effects in many
countries. Amid the Covid-19 pandemic, many businesses globally have been seeing a sharp
decline in revenue, large losses, shrink in cash flows, and inability to meet their obligations. This
raised a big concern that many business entities will be unable to continue their operations soon.
Airlines and hospitality are two industries that have been suffering most of this pandemic. This
study will discuss the concept relating to going concern, issues of airline and hospitality industries
amid the Covid-19 pandemic. This study also will provide some suggestions to management and
auditors regarding the financial statement disclosures in relation to going concern concept of the
businesses in the airline and hospitality industries.

Keywords: Covid-19 pandemic, going concern, airline industry, hospitality industry, financial statement
disclosures