Passenger yields remain well below their level a year ago, but there are ongoing signs that the long-standing downward trend in the seasonally adjusted series may be bottoming out.
The key points of the April report of the Airlines Financial Monitor are:
- Global airline share prices rose by 2.5% in April, partly reflecting expectations that the squeeze on margins will diminish. – The monthly increase was driven by European airlines, with modest increases in Asia Pacific and North America.
- The initial financial results from Q1 2017 highlight the extent that airline profit margins were squeezed in the opening months of the year by a combination of higher costs and weak yields.
- Brent crude oil prices fell sharply in mid-April, and dropped below US$50/bbl in early-May for the first time since the end of November. Forward markets still expect oil prices to rise only gradually over the next 2-3 years.
- Passenger yields remain well below their level a year ago, but there are ongoing signs that the long-standing downward trend in the seasonally adjusted series may be bottoming out.
- Passenger and freight demand growth has made a strong start to 2017. The passenger load factor remains steady close to a record high level, while the freight load factor has recovered back to levels last seen in early-2015.
- Premium airfares continue to hold up better than those of the economy cabin, supporting airline finances.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
