According to IATA’s March report of the Airlines Financial Monitor, the premium cabin accounted for 5.3% of total international origin-destination passenger traffic but almost 30% of revenues in January, highlighting the importance of the premium cabin for airline finances.
Key points of IATA's March report of the Airlines Financial Monitor:
- The final data for Q4 2017 confirms the stabilisation in airline financials in 2H17. The industry-wide EBIT profit margin was a robust 8.7% of revenues in Q4 2017 – effectively unchanged from Q4 2016.
- The broad-based global equity market sell-off in March also impacted airline shares, although the 2% decline for airlines was less than the market generally (down 2.4%). Looking through the monthly volatility, airline shares have risen by 22% over the past year, easily outpacing the overall equity market (up almost 13%).
- Oil prices rose in March, recovering some of the ground lost in February. Although jet fuel prices were largely unchanged this month, both oil & jet prices are currently around 30% higher than their level of a year ago.
- As the 2018 Lunar New Year disruption in the data clears, both passenger and freight demand remains robust. Industry-wide – capacity is now growing broadly in line with the pace of demand growth.
- The premium cabin accounted for 5.3% of total international origin-destination passenger traffic but almost 30% of revenues in January, highlighting the importance of the premium cabin for airline finances.
http://www.iata.org/publications/economics/Reports/afm/Airlines-Financial-Monitor-Mar-18.pdf
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.
