Global airline share prices jumped by 7.5% in November, driven by a 16.4% increase for North America carriers.
Key points of the IATA Airlines Financial Monitor – November 2016:
- The latest financial results from Q3 2016 continue to indicate another solid quarter for industry profitability, although there are ongoing signs that momentum in the profitability cycle has weakened;
- Global airline share prices jumped by 7.5% in November, driven by a 16.4% increase for North America carriers;
- Brent crude oil prices recently reached a 17-month high, following the agreement by OPEC to restrict oil supplies. The oil market is gradually rebalancing, with prices expected to trend upwards modestly in the coming years;
- While passenger yields edged down in September, the intense downward pressure on yields has eased since earlier in 2016, in keeping with the change in the trend of oil prices seen over the period;
- The premium segment continues to be an important buffer for airline financial performance. While premium traffic growth has lagged, premium airfares have held up better than those in economy on many routes so far this year;
- Annual growth in passenger volumes remains broadly in line with its 10-year average. Despite easing in October, the seasonally-adjusted load factor remained above the 80%-mark.
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.
