Passenger loads fell slightly in September, but remain very close to the record high achieved in August (80.6%, seasonally adjusted). By contrast, freight load factors remain at low levels not seen since mid-2009.
Key points:
- Worldwide airline share prices were up 9% in October compared to September, supported by low jet fuel prices and Strong Q3 profit results. Airline shares outperformed the broader market, which was up 7% over the month;
- The financial performance of the airline industry has remained solid, with initial Q3 results showing large profit improvements in all major regions;
- Crude oil prices stayed below $50/bbl in October, kept down by expectations of supply increases from Iran and the US as well as a softer demand outlook;
- Passenger yields in the US continue to fall and although the US$ appreciation has exaggerated declines in global fares, currency-adjusted levels are also down, by 6% on a year ago;
- 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 expanded further in September and FTKs increased after months of decline, but the pick-up was narrowly based;
- Growth in the number of seats slowed in September, well below expansion in demand, which should help support aircraft utilization rates;
- Passenger loads fell slightly in September, but remain very close to the record high achieved in August (80.6%, seasonally adjusted). By contrast, freight load factors remain at low levels not seen since mid-2009.
IATA Airlines Financial Monitor – October 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.
