Min Cao

Abstract

This thesis provides an investigation into cross-hedging strategies for jet fuel risks concerning volatility and extreme tail risk, as well as the determining factors of default risk among tourism companies including airlines. There are three chapters, revolving around the central theme of risk management, particularly in the context of the aviation and tourism industries. Each of the three chapters attempts to understand and mitigate a different type of risk that these industries face. This study enriches the existing body of knowledge, by emphasizing the complexity of risk management in the airlines and tourism industry and highlighting the diverse strategies that can be applied to handle these risks. It not only helps companies better navigate volatile business environments but also assists policymakers and regulators in shaping industry regulations and interventions.