Passenger loads reached a new record high (81.2%, seasonally adjusted) in November and freight load factors improved slightly, 0.6% month-on-month.
Key points:
- Worldwide airline share prices were up 3% in December compared to November supported by further falls in fuel prices;
- Financial performance of the airline industry has remained solid, but mostly driven by the US and Europe. Airlines in other regions are showing declines in Q3 compared to a year ago;
- Crude oil prices closed the year at around $38/bbl, reflecting intensified concerns over excess supply as well as a softer demand outlook;
- Passenger yields in the US continue to fall and although the US$ appreciation has exaggerated declines in global fares, currency-adjusted levels are also down, by 5% year-to-date;
- Weakness in the currency-adjusted yields and fares reflects downward pressure from factors including the decline in fuel costs and stronger growth in capacity relative to demand in some regions;
- RPK volumes continue positive trend and FTKs show more signs that recent declines are bottoming out;
- Growth in the number of seats rebounded in November, but still at a slower rate than growth in demand, which should help support aircraft utilization rates;
- Passenger loads reached a new record high (81.2%, seasonally adjusted) in November and freight load factors improved slightly, 0.6% month-on-month.
IATA Airlines Financial Monitor Dec 15
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
