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Turbulence Ahead? Stock Market Reactions to Aviation Accidents Worldwide

Businskyte, Eva LU (2025) NEKP01 20251
Department of Economics
Abstract
This thesis analyses how financial markets react to aviation accidents by examining the short-term stock price movements of publicly traded airlines and aircraft manufacturers. A global sample of aviation accidents occurring between 2015 and 2025 is examined using the event study methodology in order to estimate abnormal returns. The study also compares the market’s response across accident severity and firm type. The results show no statistically significant abnormal returns on the event day or immediately after, suggesting that, on average, the market does not react to aviation accidents. These findings remain robust across alternative event windows and when comparing fatal and non-fatal accidents; however, some divergence was discovered... (More)
This thesis analyses how financial markets react to aviation accidents by examining the short-term stock price movements of publicly traded airlines and aircraft manufacturers. A global sample of aviation accidents occurring between 2015 and 2025 is examined using the event study methodology in order to estimate abnormal returns. The study also compares the market’s response across accident severity and firm type. The results show no statistically significant abnormal returns on the event day or immediately after, suggesting that, on average, the market does not react to aviation accidents. These findings remain robust across alternative event windows and when comparing fatal and non-fatal accidents; however, some divergence was discovered between airlines and manufacturers. (Less)
Please use this url to cite or link to this publication:
author
Businskyte, Eva LU
supervisor
organization
course
NEKP01 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Aviation, Event Study, Abnormal Returns, Stock Market
language
English
id
9193140
date added to LUP
2025-09-12 10:52:15
date last changed
2025-09-12 10:52:15
@misc{9193140,
  abstract     = {{This thesis analyses how financial markets react to aviation accidents by examining the short-term stock price movements of publicly traded airlines and aircraft manufacturers. A global sample of aviation accidents occurring between 2015 and 2025 is examined using the event study methodology in order to estimate abnormal returns. The study also compares the market’s response across accident severity and firm type. The results show no statistically significant abnormal returns on the event day or immediately after, suggesting that, on average, the market does not react to aviation accidents. These findings remain robust across alternative event windows and when comparing fatal and non-fatal accidents; however, some divergence was discovered between airlines and manufacturers.}},
  author       = {{Businskyte, Eva}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Turbulence Ahead? Stock Market Reactions to Aviation Accidents Worldwide}},
  year         = {{2025}},
}