The short-term impact of 9/11 on European airlines demand

Abstract

This paper assesses the short-term impact of the US September 11 terrorist attacks and its after-effects on European Airline Demand. Using monthly data for ten time series from the Association of European Airlines (AEA), different univariate methods are estimated in order to evaluate the airlines traffic in terms of revenue passenger kilometres by comparing the fitted values resulting from the univariate methods employed for one year against the actuals. The results suggest that th September 11 impacted all of the European airline routes under study to a varying degree. The effects of the terrorism attack did not fully dissipate in most of the time series understudy by the end of October 2002.