Passenger yields in the US are starting to weaken and fares in other regions fell further, reflecting downward pressure from earlier declines in fuel related costs.
Key points:
- Worldwide airline share prices rose 2% in March but the trend has been broadly flat in Q1, consistent with the rally in crude oil prices during the same period;
- 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 a positive turn-around in Asia Pacific;
- Passenger yields in the US are starting to weaken and fares in other regions fell further, reflecting downward pressure from earlier declines in fuel related costs;
- Air transport volumes continued to expand at 5-6% trend, as FTKs surged from a temporary boost to demand;
- Growth in seats rebounded in February, but remains below expansion in volumes;
- Air freight load factors continued sideways trend in February as passenger loads start to improve, particularly on international markets
Airlines Financial Monitor Mar 2015
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