The effects of the COVID-19 travel ban on the stock prices of the ten largest airline firms

Abstract

This study investigates COVID-19's travel bans announcements on the stock prices of the ten largest airline firms. We use the three Event study methodology to detect the market reaction before and after the announcements. The results reveal that the travel ban led to statistically significant and mostly negative abnormal returns during the event window. The study also found that the share price reaction to the travel ban was smaller for Japanese airlines, followed by Chinese airlines. The U.S.-based airline generally exhibits higher abnormal returns during the event window. The results have policy and investor implications. © 2025 Nova Science Publishers, Inc.