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Impact of climate risk on airline stock price volatility

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  • Jin, Zhendong
  • Cairang, Angxiu

Abstract

This study examines the impact of climate risk on airline stock price volatility among China's listed airlines from 2012 to 2023. Utilizing a constructed climate risk index, we establish a significant positive link between climate risk and stock price volatility. The analysis shows that climate risk increases volatility through operating costs and media attention, especially during peak travel seasons. The study's innovative integration of financial market uncertainty and behavioral finance theories offers a comprehensive understanding of these dynamics. We end with actionable climate risk management advice for airlines and insights on sustainable aviation policy development.

Suggested Citation

  • Jin, Zhendong & Cairang, Angxiu, 2025. "Impact of climate risk on airline stock price volatility," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016775
    DOI: 10.1016/j.frl.2024.106648
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    References listed on IDEAS

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