Oil, oil volatility and airline stocks: A global analysis

Mohan Singh Nandha, Robert Darren Brooks, Robert Faff

Research output: Contribution to journalArticleResearchpeer-review

Abstract

By selecting a globally representative dataset of airline indices, this study demonstrates that oil price or oil price regimes (delineated by the first gulf war and the 9/11 terror attacks) alone do not have any significant implications for airline stock prices. Overall, these findings are contrary to the general perception that higher oil prices or oil volatility are bad news for the airlines industry. Perhaps airlines are in a better position to estimate their oil risk and take hedging positions as appropriate. However, airlines stocks appear to be significantly prone to the combined effects of oil volatility and oil regimes determined by the globally significant events/ shocks.
Original languageEnglish
Pages (from-to)302 - 318
Number of pages17
JournalContabilitate si Informatica de Gestiune
Volume12
Issue number2
Publication statusPublished - 2013

Cite this

Nandha, Mohan Singh ; Brooks, Robert Darren ; Faff, Robert. / Oil, oil volatility and airline stocks: A global analysis. In: Contabilitate si Informatica de Gestiune. 2013 ; Vol. 12, No. 2. pp. 302 - 318.
@article{39ee4d364e374f7ab62a2c94c587fa7f,
title = "Oil, oil volatility and airline stocks: A global analysis",
abstract = "By selecting a globally representative dataset of airline indices, this study demonstrates that oil price or oil price regimes (delineated by the first gulf war and the 9/11 terror attacks) alone do not have any significant implications for airline stock prices. Overall, these findings are contrary to the general perception that higher oil prices or oil volatility are bad news for the airlines industry. Perhaps airlines are in a better position to estimate their oil risk and take hedging positions as appropriate. However, airlines stocks appear to be significantly prone to the combined effects of oil volatility and oil regimes determined by the globally significant events/ shocks.",
author = "Nandha, {Mohan Singh} and Brooks, {Robert Darren} and Robert Faff",
year = "2013",
language = "English",
volume = "12",
pages = "302 -- 318",
journal = "Contabilitate si Informatica de Gestiune",
issn = "1583-4387",
number = "2",

}

Oil, oil volatility and airline stocks: A global analysis. / Nandha, Mohan Singh; Brooks, Robert Darren; Faff, Robert.

In: Contabilitate si Informatica de Gestiune, Vol. 12, No. 2, 2013, p. 302 - 318.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Oil, oil volatility and airline stocks: A global analysis

AU - Nandha, Mohan Singh

AU - Brooks, Robert Darren

AU - Faff, Robert

PY - 2013

Y1 - 2013

N2 - By selecting a globally representative dataset of airline indices, this study demonstrates that oil price or oil price regimes (delineated by the first gulf war and the 9/11 terror attacks) alone do not have any significant implications for airline stock prices. Overall, these findings are contrary to the general perception that higher oil prices or oil volatility are bad news for the airlines industry. Perhaps airlines are in a better position to estimate their oil risk and take hedging positions as appropriate. However, airlines stocks appear to be significantly prone to the combined effects of oil volatility and oil regimes determined by the globally significant events/ shocks.

AB - By selecting a globally representative dataset of airline indices, this study demonstrates that oil price or oil price regimes (delineated by the first gulf war and the 9/11 terror attacks) alone do not have any significant implications for airline stock prices. Overall, these findings are contrary to the general perception that higher oil prices or oil volatility are bad news for the airlines industry. Perhaps airlines are in a better position to estimate their oil risk and take hedging positions as appropriate. However, airlines stocks appear to be significantly prone to the combined effects of oil volatility and oil regimes determined by the globally significant events/ shocks.

M3 - Article

VL - 12

SP - 302

EP - 318

JO - Contabilitate si Informatica de Gestiune

JF - Contabilitate si Informatica de Gestiune

SN - 1583-4387

IS - 2

ER -