Relationship between Crude Oil Price Changes and Airlines Stock Price: The Case of Indian Aviation Industry

Chinnadurai Kathiravan (), Selvam Murugesan (), Balasundram Maniam and Sankaran Venkateswar
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Balasundram Maniam: Sam Houston State University, Texas, USA
Sankaran Venkateswar: School of Economics and Business Administration, Saint Mary s College of California, USA

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 5, 7-13

Abstract: The present study investigated the relationship between airline stock price and crude oil price. For this study, six airlines such as Air India, Go Air, IndiGo, Jet Lite, Jet Airways and Spice Jet and three crude oil markets, WTI-West Texas Intermediate and Texas Light Sweet, Brent -North Sea Brent Crude, and Dubai-Dubai Crude, were selected Based on their market capitalization. According to empirical results, a Crude oil price triggered fluctuations in most of the airline stock returns. Moreover, Air India, IndiGo, Jet Airways and Spice Jet experienced statistically significant relationships between their stock returns and crude oil price but did not correlate with them during the study period from January 1, 2007 to November 30, 2018. The findings of present study would be useful for individual and institutional investors and policy makers.

Keywords: Crude Oil Price; Airline Stock Return; Descriptive Statistics; Unit Root Test; Correlation Matrix; Granger Causality Test. (search for similar items in EconPapers)
JEL-codes: G11 G14 G15 Q43 R40 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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