Passenger yields in the US continue to fall and although the fall in fares elsewhere appears to have stopped, levels remain 13% down on a year ago.
Key points:
– Airline share prices rose 4% in July compared to June, buoyed by falling oil prices and strong Q2 financial results;
– Initial Q2 financial results show a large improvement in profits across all major regions and particularly in the US;
– Crude oil prices fell further in July, pushed down by expectations of supply increases from Iran and the US – levels are down 54% on 2014 highs;
– Passenger yields in the US continue to fall and although the fall in fares elsewhere appears to have stopped, levels remain 13% down on a year ago;
– Weakness in yields and fares reflects downward pressure from declines in fuel costs, stronger growth in capacity relative to demand as well as exchange rate distortions;
– Air transport volume growth moderated in June but the trend for 2015 remains robust – air freight volumes weakened further on declining trade activity;
– Growth in seats accelerated in June as new aircraft deliveries increased, surpassing expansion in demand;
– Air freight load factors were stable in June but remain at lows not seen since mid-2009. Passenger loads dipped slightly as growth in capacity outstripped the moderation in demand.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
