Airlines shares were unaffected by emerging market turmoil, buoyed by solid financial performance and lower fuel prices.
Key points:
- Airline shares gained 6% in January compared to December, outperforming the broader market which fell 4%;
- Airlines shares were unaffected by emerging market turmoil, buoyed by solid financial performance and lower fuel prices;
- Initial Q4 financial results show sustained improvement in profits, driven by performance of US airlines;
- Jet fuel prices eased in January, but remain within 3 year range supported by improving demand for crude oil;
- US passenger yields are stable on a year ago despite Q4 moderation, but weakness continues in other regions;
- Air freight markets improved in 2013 as business confidence and world trade picked-up, and passenger travel sustained growth at the solid 30-year growth trend (%5+), reflecting strong performance of emerging markets;
- Growth in available seats rose strongly in December, as new deliveries and stored aircraft entered the fleet;
- But passenger load factors rebounded as a result of a fast expansion in volumes, rising above 79%, globally;
- Air freight loads paused their recent improvement, but remain at 2013-highs despite being barely above 45%.
Airlines Financial Monitor Jan 14
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
