Oil Price and Airlines Company Financial Soundness
Rofikoh Rokhim & Winalda Ajaniara Perdana
Department of Management, Faculty of Economics and Business, Universitas Indonesia.
Abstract
This study investigates the impact of oil price financial soundness of airlines company during period 2006-2017. Using the OPEC oil price as an indicator, this study found that oil price have negative impact on airlines company financial soundness. Oil price may affect the cost function because oil price is considered to be the biggest component in cost structure of airlines company. Therefore, airlines company should always anticipate the oil price in order to maintain its financial.
Keywords: oil price, airlines company, financial soundness
Topic: Finance