Worldwide airline share prices fell 3% in February as crude oil prices rebounded from January lows.
Key points:
- Worldwide airline share prices fell 3% in February as crude oil prices rebounded from January lows;
- After falling more than 50% by the end of 2014, crude oil prices have rebounded to $60/bbl;
- Q4 financial results show continued gains in the US and signs of a positive turn-around in Asia Pacific;
- Passenger yields in the US resume sideways trend as fares in other regions fall further;
- Air transport volumes weakened in January, but within normal month-to-month volatility;
- Notably, though, the demand backdrop continues to show presence of downside risks, including easing business confidence and falling exports orders;
- Growth in available seats decelerated in January, but still expanded at a positive 2-3% annualized rate, in excess of the contraction in volumes;
- Passenger and freight loads fell in January compared to December, reflecting the fall in volumes and continued growth in international market capacity.
Airlines Financial Monitor Feb 2015
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