This study examines how accidents and environmental crises affect organizational performance and how these two factors interact. In organizational studies, accidents and crises have primarily been discussed concerning pre- or post-event management, such as elucidating causes, prevention, and reaction strategies. However, few studies have attempted to measure and empirically test the direct impact of accidents or crises on organizational performance. Additionally, limited attention has been given to examining the differential effects of accidents or crises under specific boundary conditions. This study proposes that accidents and crises negatively impact organizational performance but at a diminishing rate, indicating that the negative relationships are nonlinear. Specifically, the study investigates the negative impacts on organizational performance when severe accidents, such as fatalities, and environmental crises, such as terrorism, occur. Moreover, the study introduces the concept that the effects of accidents are non-linearly moderated by both the crisis itself and the duration after the crisis erupts. To verify these hypotheses, data from the U.S. aviation industry, spanning from 1978 to 2012, was analyzed. The results indicate that both the fatality rate and the 9/11 terrorist attacks had a negative impact on airline performance, and these negative effects diminished in a non-linear manner over time. This study contributes to the field of organizational theory on accidents and crises by demonstrating that both accidents and crises negatively impact organizational performance but at a decreasing rate over time. It also advances the literature by suggesting the potential interaction between accidents, as events occurring at the organizational level, and crises, as events occurring at the environmental level.