Airline Stock Abnormal Returns

Sammanfattning: With the progress seen in recent years, and especially since the beginning of the decade towards a more globalized world, airlines have gained special relevance as key players in this new game field. Then role they play is fundamental to guarantee that industries and individuals can move freely around the world, enabling many economic processes to succeed. Academics have studied, among other things, the role that airlines play in the economy or their stock price evolution, yet few studies have covered how do airlines get affected by disasters of any kind, including here human or natural disasters, let alone in recent years during which the industry has experienced significant changes. This study aims to perform an event study about the abnormal returns that certain public events have caused in the airline industry in the last 25 years. The study also analyses if these abnormal returns are similar at a global level or if, on the contrary, significant differences are depending on the geographical region. The study results indicate different behaviour of the airline industry stocks with respect to distinct events, as well as a change of behaviour over time of the whole industry with respect to the market for certain kind of events.