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Financial Risk Exposures in the Airline Industry: Evidence from Australia and New Zealand

Author

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  • Geoffrey F. Loudon

    (Department of Accounting and Finance, Macquarie University, NSW 2109.)

Abstract

Important financial risks facing the airline industry include interest-rate, currency and fuel-price risk. This paper estimates the exposure to these risks within the airline industry of Australia and New Zealand, using both linear and non-linear specifications, for a variety of horizon lengths. Evidence for exposure, both symmetric and asymmetric, tends to strengthen as the return horizon is lengthened. Exposure to these financial risks is largely unchanged by the terrorist attacks and the collapse of a major competitor in September 2001.

Suggested Citation

  • Geoffrey F. Loudon, 2004. "Financial Risk Exposures in the Airline Industry: Evidence from Australia and New Zealand," Australian Journal of Management, Australian School of Business, vol. 29(2), pages 295-316, December.
    • Handle: RePEc:sae:ausman:v:29:y:2004:i:2:p:295-316
    DOI: 10.1177/031289620402900208
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    References listed on IDEAS

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    Cited by:

    1. Shotar, M.M. & El-Mefleh, M.A., 2009. "Economic Exposure To Exchange Rates In Jordan Companies: A Monthly Econometric Model Of The Rate Of Return Of Firms, 2004-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).
    2. Yun, Xiao & Yoon, Seong-Min, 2019. "Impact of oil price change on airline's stock price and volatility: Evidence from China and South Korea," Energy Economics, Elsevier, vol. 78(C), pages 668-679.
    3. Mojisola Olugbode & Ahmed El-Masry & John Pointon, 2014. "Exchange Rate and Interest Rate Exposure of UK Industries Using First-order Autoregressive Exponential GARCH-in-mean (EGARCH-M) Approach," Manchester School, University of Manchester, vol. 82(4), pages 409-464, July.

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