Premium airfares generally held up better than those of the economy cabin in 2016, and premium’s share of revenues increased on a number of key routes. This has helped to support airline financial performance.
Key points of IATA Airlines Financial Monitor – February 2017:
- The latest financial results for Q4 2016 show that the decline in profitability, which began in the third quarter of 2016, continued across most regions in the fourth quarter, albeit from historically high levels.
- Global airline share prices continued their positive start to 2017 during February, outperforming the wider global equity market, as expectations for airlines profits improve, particularly in the US.
- Brent crude oil prices have been broadly stable since December, and traded within a very tight band of $US55-57/bbl during February. Oil prices are still expected to rise only gradually over the years ahead.
- Average passenger yields in US$ terms continue to fall, but the recent strength of the US$ may be disguising signs of a stabilization or slowing of this down-trend.
- Passenger and freight demand both carried momentum into the New Year. The industry-wide passenger load factor remains stable at a record high, and the freight load factor has continued to recover.
- Premium airfares generally held up better than those of the economy cabin in 2016, and premium’s share of revenues increased on a number of key routes. This has helped to support airline financial performance.
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.
