Financial Risk Exposures in the Airline Industry: Evidence from Australia and New Zealand

Geoffrey F. Loudon
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Geoffrey F. Loudon: Department of Accounting and Finance, Macquarie University, NSW 2109.

Australian Journal of Management, 2004, vol. 29, issue 2, 295-316

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.

Keywords: FINANCIAL RISK EXPOSURE; RISK MANAGEMENT; AIRLINE INDUSTRY (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:29:y:2004:i:2:p:295-316

DOI: 10.1177/031289620402900208

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