Growth in available seats fell to an annualized rate of 1%, well below the pace of growth in demand, which should support aircraft utilization rates.
Key points:
- Worldwide airline share prices rose 14% in November, supporting by continued decline in the price of crude oil and jet fuel;
- Crude oil prices are down 36% since the mid-year peak, reflecting appreciation of the US dollar as well as continued growth in supply, particularly in the US;
- Q3 financial results show improvements in the US being partially offset by weakness in other regions;
- US passenger yields remain up on a year ago, but weakness continues in other regions;
- Air freight volumes continue to expand and the trend in air travel growth remains positive, supported by improving economic conditions in the US and strong trade growth in Asia Pacific;
- Growth in available seats fell to an annualized rate of 1%, well below the pace of growth in demand, which should support aircraft utilization rates;
- Passenger load factors weakened slightly in October, but air freight load factors continue to show steady improvement on the back of growth in demand.
Airlines Financial Monitor Nov. 2014
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
