Growth in available seats accelerated in December, but is still below the pace of growth in demand, which should support aircraft utilization rates.
Key points:
- The rise in worldwide airline share prices slowed as declines in crude oil and jet fuel prices paused;
- After falling more than 50% by the end of 2014, crude oil and jet fuel prices stabilized in January;
- Initial Q4 financial results show improvements continuing to be driven by US carriers;
- Passenger yields in the US show small year-end gains as fares in other regions fall further;
- Air travel growth remained strong in December and air freight demand sustained recent gains, despite developing concerns over the health of the global economy;
- Growth in available seats accelerated in December, but is still below the pace of growth in demand, which should support aircraft utilization rates;
- Passenger load factors trended improved in December, but air freight load factors lost ground on significant growth in capacity in Asia Pacific.
ΙΑΤΑ Airlines Financial Monitor January 2015
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
