Airline industry equities under external uncertainty shocks
| Authors | |
|---|---|
| Year of publication | 2024 |
| Type | Article in Periodical |
| Magazine / Source | ECONOMICS LETTERS |
| MU Faculty or unit | |
| Citation | |
| web | https://www.sciencedirect.com/science/article/pii/S0165176524004786 |
| Doi | http://dx.doi.org/10.1016/j.econlet.2024.111994 |
| Keywords | Airline industry; Equity market; External shocks; Uncertainty |
| Attached files | |
| Description | We gauge the impact of news and other relevant external uncertainties facing airline firms via an equity market lens. Using local projections, we establish that rising investors’ fear shocks have long-lasting negative effects on airline industry equity returns, while increasing geopolitical, climate policy, and fuel cost uncertainties have comparatively short-lived impacts. Our results are robust to several alternative model specifications, including a pre-pandemic subsample. Based on our findings, we provide a promising avenue for future research in airline financial management. |
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