INFLATION AND MONTHLY STOCK RETURNS RELATIONSHIP IN THE AIRLINE MARKET

Year 2023, Volume: 7 Issue: 2, 151 - 161, 18.10.2023

Olcay Ölçen

Abstract

The aim of this manuscript is to make an empirical analysis on the relationship between stock return
and inflation in selected airlines from different regions of the world and airline alliances on a monthly
selected dataset. The main results show regional, continental, or specific – country-based activities
have got more impacts on inflation-stock return relations than airline alliances in the period between
March 2014 and May 2022. Especially, inflation rates have got a causal, explanative and cointegrating
relation with airline stock returns in Eastern countries or Asia.

Keywords

Airlines, Inflation, Fourier Analysis, Toda-Yamamoto causality test.

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