Pricing Fuel Risk: Oil Price Exposure, Fuel Hedging and the Stock Returns of Ryanair, Delta Air Lines and Lufthansa

Peter Moschos
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Peter Moschos: Mohawk College

Littera Scripta, 2026, vol. 19, issue 2, 1–21

Abstract: This study examines the relationship between crude oil price fluctuations and equity returns of three international airlines, Ryanair Holdings, Delta Air Lines, and Deutsche Lufthansa, representing different business models and fuel hedging strategies. Using daily financial data, the analysis investigates airline stock return sensitivity to West Texas Intermediate (WTI) and Brent crude oil futures prices, with the S&P 500 serving as the market benchmark. The methodology combines correlation analysis, multiple regression, scenario-based sensitivity analysis, market beta estimation, and single-factor elasticity regressions. The findings reveal considerable differences in oil price exposure across airlines. Ryanair exhibits the strongest negative relationship, with estimated elasticities of −0.12 for WTI and −0.13 for Brent (p

Keywords: oil price risk; airline stocks; stock returns; fuel hedging; oil price elasticity; market beta; WTI; Brent (search for similar items in EconPapers)
JEL-codes: C22 G11 G12 G32 L93 Q43 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:rsg:littra:2026-009

DOI: 10.36708/LS.2026.I02.001

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