THE IMPACT OF CORONAVIRUS PANDEMIC ON AIRLINE STOCKS: AN APPLICATION OF QUANTILE-ON-QUANTILE REGRESSION MODEL

Coronavirus disease that appeared in Wuhan City, China in December, 2019 that has negatively affected many industries around the world over the short term. Countries has imposed various travel restrictions to prevent the spread of the virus during this process. The earliest economic effects of the epidemic were felt in the airline industry, which increase the financial losses of the airline companies. This study makes an attempt to examine the impact of daily confirmed cases of Covid-19 around the world on the international airline companies’ stock market prices by using Quantile-on-Quantile regression approach. The findings reveal that, in general, the number of cases has a strong negative impact on the lowest values of airline stocks in the period studied. Interestingly, the airline companies operating in Asia were less adversely affected compared to other airlines