Assessing the Impact of the September 11 Terrorist Attacks on U.S. Airline Demand
Brown University Economics Working Paper No. 2003-16
24 Pages Posted: 18 May 2005
Date Written: February 3, 2004
This paper assesses the impact of the September 11th terrorist attacks and its after-effects on U.S. airline demand. Using monthly time-series data from 1986-2003, we find that September 11th resulted in both a negative transitory shock of over 30% and an ongoing negative demand shock amounting to roughly 7.4% of pre-September 11th demand. This ongoing demand shock has yet to dissipate (as of November 2003) and cannot be explained by economic, seasonal, or other factors.
Keywords: Airlines, Structural Change, Attenuating Shock, September 11
JEL Classification: R41, L16, L93
Suggested Citation: Suggested Citation