IATA Reports Mixed Fortunes for Airlines

Heathrow FinalsIATA’s Airlines Financial Monitor report for May 2014 revealed worldwide airline share prices rose 5% in May compared to April, attributable mostly to US airlines performance.  While Q1 financial results show strong gains in US airlines’ performance, it described “weakness” in Asia Pacific, partly linked to Chinese carriers and the depreciating Yuan. 

Jet fuel prices are trending sideways and remain high at around $120/bbl, supported by expectations of disruptions to crude oil supplies and US passenger yields declined in Q1, likely hampered by temporary weather-related slowdown, and weakness continues in other regions;

IATA recorded a growth in air travel during April, but stated that air freight demand: “continues to moderate” in line with weakening world trade growth so far this year.

The number of airline seats available picked up in April and this is attributed to a combination of new deliveries and aircraft being returned to service after storage.

IATA says the growth in seats available remains strong, but the pick-up in passenger demand in April should help restrict any downward pressure on aircraft utilisation rates; 

Overall, IATA’s summary states passenger loads improved slightly on the back of rising demand, but air freight load factors have made little progress in 2014 overall.

You can see IATA’s full report at

http://www.iata.org/whatwedo/Documents/economics/Airlines-Financial-Monitor-May-14.pdf