The impact of airlines' policies during COVID-19 on travellers' repurchase intentions: the case of Aegean Airlines

Abstract

The COVID-19 outbreak had a dramatic impact on the hospitality and air transport industries. After an international lockdown and mass flight cancellations in March 2020, airlines were required to issue full refunds to their customers or offer alternative options like credit vouchers for future flights. Aegean Airlines is one of the airlines that suspended any refund option and only offered vouchers to its customers. The purpose of this case study is to examine the likely impacts of an airline's crisis response during the COVID-19 pandemic on its customers' future decisions to use the same airline again, or to revisit their destination. A survey was created and disseminated online during the height of the crisis and the data were analysed through logistic regression models and qualitative, textual analyses. The findings of this exploratory study suggest that an airline's cancellation policy, combined with poor customer service communications and transparency, negatively influence passengers' re-purchase intentions, as well as their willingness to revisit the airline's host country in the future.