Aviation Industry's Ripple Effects on the Global Economy During COVID-19 Pandemic

In this research, I explored how major disruptions to the aviation industry ripple through the global economy and stock markets. By examining three significant events—9/11, the SARS outbreak, and recent aviation-related disruptions—I analyzed their cascading effects on both upstream and downstream sectors, highlighting aviation’s essential role in economic infrastructure.

The study found that each of these events caused sharp declines in airline stocks and broader market instability. Despite their differences, they shared a common thread: they revealed the tight connection between civil aviation and economic health. Disruptions in aviation extend far beyond the industry itself, impacting trade, tourism, oil prices, investor confidence, and overall economic performance.

This analysis underscores that civil aviation is not just a transportation mode, but a critical economic driver. Its vulnerability to global crises makes it a vital indicator in understanding how markets respond to large-scale shocks. The findings provide valuable insights into the interconnectedness of global industries and the ripple effects of disruptions.

© 2020 Shreeyasha Pandey. All rights reserved.