Airline industry equities under external uncertainty shocks

Blampied, N. and Mahadeo, S. M. R. ORCID: https://orcid.org/0000-0001-8576-5755 (2024) Airline industry equities under external uncertainty shocks. Economics Letters, 244. 111994. ISSN 1873-7374 doi: 10.1016/j.econlet.2024.111994

Abstract/Summary

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.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/124356
Identification Number/DOI	10.1016/j.econlet.2024.111994
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher	Elsevier
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