Do oil price fluctuations influence air travel Demand? Symmetric and asymmetric insights from Korea and Japan

Jungho Baek and Soojoong Nam

Journal of Air Transport Management, 2025, vol. 128, issue C

Abstract: This article investigates how fluctuations in oil prices influence air travel demand in Korea and Japan, considering short- and long-term impacts. Using both ARDL and NARDL models, the study reveals that oil prices significantly influence air travel demand, with asymmetrical impacts more pronounced in Korea than in Japan. While both countries show short-term sensitivity to oil prices, Korea also experiences long-term effects. Economic growth and exchange rates are also critical factors affecting air travel demand. These findings suggest tailored policy approaches for Korea and Japan to enhance the resilience of their aviation sectors in response to oil price changes.

Keywords: Air travel; Asymmetry; Crude oil prices; Japan; Korea (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:128:y:2025:i:c:s096969972500119x

DOI: 10.1016/j.jairtraman.2025.102856

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