IATA Issued their April report of the Airlines Financial Monitor.
Key points in the report includes:
- Global airline share prices rose by XNUMX% in April, partly reflecting expectations that the squeeze on margins will diminish. The monthly increase was driven by European airlines, with modest increases in Asia Pacific and North America.
- The initial financial results from QXNUMX XNUMX highlight the extent that airline profit margins were squeezed in the opening months of the year by a combination of higher costs and weak yields.
- Brent crude oil prices fell sharply in mid-April, and dropped below US$XNUMX/bbl in early-May for the first time since the end of November. Forward markets still expect oil prices to rise only gradually over the next XNUMX-XNUMX years.
- Passenger yields remain well below their level a year ago, but there are ongoing signs that the long-standing downward trend in the seasonally adjusted series may be bottoming out.
- Passenger and freight demand growth has made a strong start to XNUMX. The passenger load factor remains steady close to a record high level, while the freight load factor has recovered back to levels last seen in early-XNUMX.
- Premium airfares continue to hold up better than those of the economy cabin, supporting airline finances.