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Assessing the impact of the September 11 terrorist attacks on U.S. airline demand
1Department of Economics, Box B, Brown University, Providence, Rhode Island 02912, USA.
Abstract:
This paper assesses the impact of the September 11 terrorist attacks and its after-effects on U.S. airline demand. Using monthly time-series data from 1986 to 2003, we find that September 11 resulted in both a negative transitory shock of over 30% and an ongoing negative demand shock amounting to roughly 7.4% of pre-September 11 demand. This ongoing demand shock has yet to dissipate (as of November 2003) and cannot be explained by economic, seasonal, or other factors.
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