IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v141y2025ics0140988324008545.html
   My bibliography  Save this article

Assessing the influence of unplanned oil supply outages on airline stock connectedness

Author

Listed:
  • Cai, Yifei
  • Zhang, Yahua
  • Xu, Yuchao

Abstract

Fuel is one of the airline industry's most significant inputs and accounts for 30 % of an airline's total expenses on average. Airline companies' prices are sensitive to the crude oil market fluctuations. Unfortunately, no existing literature has focused on the influences of unplanned oil supply outages on the airline stock market performance. By employing the connectedness method proposed by Diebold and Yilmaz (2009, 2012), we first contribute to existing studies by investigating the predictability relationship between the total spillovers index and unplanned oil supply disruptions in both OPEC and non-OPEC countries. Notably, we observe that fluctuations in the total spillovers index closely align with events in the oil market. Furthermore, it becomes evident that non-OPEC oil supply disruptions exert a more substantial influence on the total volatility spillovers index in comparison to their OPEC counterparts. Finally, we conclude by highlighting the significant policy implications arising from our findings including diversifying oil supply sources and prioritizing risk management strategies in airlines' fuel hedging practices.

Suggested Citation

  • Cai, Yifei & Zhang, Yahua & Xu, Yuchao, 2025. "Assessing the influence of unplanned oil supply outages on airline stock connectedness," Energy Economics, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324008545
    DOI: 10.1016/j.eneco.2024.108145
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324008545
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.108145?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Total spillovers index; Returns; Volatility; Airlines; Unplanned oil supply outages;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324008545. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.