Location
Parker-Reed, SSWAC
Start Date
30-4-2015 9:00 AM
End Date
30-4-2015 10:55 AM
Project Type
Poster
Description
The purpose of this study is to examine how fluctuations in the price of NYMEX WTI light-sweet crude oil futures, the Consumer Confidence Index, and the S&P GSCI Aluminum TR index, as well as changes in the seasons, predict variation in airline carrier equity and airfare prices. We will run six regressions in order to distinguish the different effects of these explanatory variable on low-cost and full-service airline equity. Serving as a proxy for low-cost airlines, we use the three largest carriers in the United States: Southwest Airlines, JetBlue Airways, and Spirit Airlines. We then compare these results to those analyzing the three largest domestic, full-service airline carriers: American Airlines, Delta Air Lines, and Spirit Airlines. Through these regressions, we will determine if business model plays a significant role in how airline equity is predicted by changes in the aforementioned factors. Utilizing the same model, we will then run a regression of the aggregate airfare prices as a response variable. Through this final regression analysis we will able to determine the impact of each explanatory factors on consumers or investors of airline carriers.
Faculty Sponsor
Daniel LaFave
Sponsoring Department
Colby College. Economics Dept.
CLAS Field of Study
Social Sciences
Event Website
http://www.colby.edu/clas
ID
1818
Included in
Equity Returns: Low-cost vs. Full-service Airline Carriers
Parker-Reed, SSWAC
The purpose of this study is to examine how fluctuations in the price of NYMEX WTI light-sweet crude oil futures, the Consumer Confidence Index, and the S&P GSCI Aluminum TR index, as well as changes in the seasons, predict variation in airline carrier equity and airfare prices. We will run six regressions in order to distinguish the different effects of these explanatory variable on low-cost and full-service airline equity. Serving as a proxy for low-cost airlines, we use the three largest carriers in the United States: Southwest Airlines, JetBlue Airways, and Spirit Airlines. We then compare these results to those analyzing the three largest domestic, full-service airline carriers: American Airlines, Delta Air Lines, and Spirit Airlines. Through these regressions, we will determine if business model plays a significant role in how airline equity is predicted by changes in the aforementioned factors. Utilizing the same model, we will then run a regression of the aggregate airfare prices as a response variable. Through this final regression analysis we will able to determine the impact of each explanatory factors on consumers or investors of airline carriers.
https://digitalcommons.colby.edu/clas/2015/program/14