Financial risk exposures in the airline industry: evidence from Australia and New Zealand

Geoffrey F. Loudon*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)295-316
Number of pages22
JournalAustralian Journal of Management
Volume29
Issue number2
DOIs
Publication statusPublished - 2004

Keywords

  • AIRLINE INDUSTRY
  • FINANCIAL RISK EXPOSURE
  • RISK MANAGEMENT

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