Abstract This study investigates the asymmetric effects of economic growth and recession on airline demand by focusing on South Korea’s and the United States’ air passenger and freight sectors. Quarterly data from 1990 to 2023 are analyzed to identify the impact of economic fluctuations on air passenger and freight demand, incorporating macroeconomic variables such as the industrial production index, consumer price index, and oil prices. The results reveal a significant asymmetry in how airline demand responds to economic growth versus recessions. In South Korea and the United States, negative shocks lead to more pronounced declines in air passenger and freight demand versus the increases observed during periods of economic growth. Enhancing the aviation sector’s resilience can help protect jobs and maintain crucial transport links. The nuanced understanding of short- and long-term dynamics from this study delivers new insights into the airline sector’s response to macroeconomic shocks.
Nari Jung (Wed,) studied this question.