How do board governance and operational management affect carbon emissions among full-service and low-cost carriers?

Abstract

This study analyses 35 global airlines, comprising 17 full-service carriers (FSCs) and 18 low-cost carriers (LCCs), to examine how different business models, specifically board governance and operational management factors, influence carbon emissions. The findings show that LCCs generally produce lower total carbon emissions than FSCs, primarily due to their smaller operational scale and more uniform fleets. However, further interaction analyses reveal that, when other factors are held constant, certain LCC practices, such as board remuneration schemes and short-haul network structures, are positively associated with total carbon emissions compared with those of FSCs. The study also offers practical recommendations for airline managers and industry professionals who are aiming to balance cost efficiency with environmental responsibility. These insights help airlines operating under different business models reduce their overall carbon footprint.