Assessing the influence of unplanned oil supply outages on airline stock connectedness

IF 13.6 2区经济学 Q1 ECONOMICS

Energy Economics Pub Date : 2024-12-19 DOI:10.1016/j.eneco.2024.108145

Yifei Cai, Yahua Zhang, Yuchao Xu

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引用次数: 0

Abstract

Fuel is one of the airline industry's most significant inputs and accounts for 30 % of an airline's total expenses on average. Airline companies' prices are sensitive to the crude oil market fluctuations. Unfortunately, no existing literature has focused on the influences of unplanned oil supply outages on the airline stock market performance. By employing the connectedness method proposed by Diebold and Yilmaz (2009, 2012), we first contribute to existing studies by investigating the predictability relationship between the total spillovers index and unplanned oil supply disruptions in both OPEC and non-OPEC countries. Notably, we observe that fluctuations in the total spillovers index closely align with events in the oil market. Furthermore, it becomes evident that non-OPEC oil supply disruptions exert a more substantial influence on the total volatility spillovers index in comparison to their OPEC counterparts. Finally, we conclude by highlighting the significant policy implications arising from our findings including diversifying oil supply sources and prioritizing risk management strategies in airlines' fuel hedging practices.

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评估计划外石油供应中断对航空公司股票连通性的影响

燃油是航空业最重要的投入之一，平均占航空公司总支出的30%。航空公司的价格对原油市场的波动很敏感。遗憾的是，目前还没有文献关注计划外石油供应中断对航空公司股票市场表现的影响。通过采用Diebold和Yilmaz（2009、2012）提出的连通性方法，我们首先通过调查总溢出指数与欧佩克和非欧佩克国家计划外石油供应中断之间的可预测性关系，为现有研究做出贡献。值得注意的是，我们观察到总溢出指数的波动与石油市场的事件密切相关。此外，很明显，与欧佩克国家相比，非欧佩克国家的石油供应中断对总波动溢出指数的影响更大。最后，我们强调了我们的研究结果所产生的重大政策影响，包括多样化的石油供应来源和优先考虑航空公司燃油对冲实践中的风险管理策略。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Energy Economics ECONOMICS-

CiteScore

18.60

自引率

12.50%

发文量

524

期刊介绍： Energy Economics is a field journal that focuses on energy economics and energy finance. It covers various themes including the exploitation, conversion, and use of energy, markets for energy commodities and derivatives, regulation and taxation, forecasting, environment and climate, international trade, development, and monetary policy. The journal welcomes contributions that utilize diverse methods such as experiments, surveys, econometrics, decomposition, simulation models, equilibrium models, optimization models, and analytical models. It publishes a combination of papers employing different methods to explore a wide range of topics. The journal's replication policy encourages the submission of replication studies, wherein researchers reproduce and extend the key results of original studies while explaining any differences. Energy Economics is indexed and abstracted in several databases including Environmental Abstracts, Fuel and Energy Abstracts, Social Sciences Citation Index, GEOBASE, Social & Behavioral Sciences, Journal of Economic Literature, INSPEC, and more.