The premium segment remains an important buffer for airline financial performance. Premium airfares have held up better than those in economy on many of the most important premium routes so far this year.
Key points of the IATA Airlines Financial Monitor – October 2016:
- The initial financial results from Q3 2016 point to another solid quarter for industry profitability and cash flow, although they add to earlier signs that the industry profitability cycle may have peaked;
- Global airline share prices rose by 3.6% in October, but have underperformed the wider equity market this year;
- Brent crude oil prices reached a 15-month high during October, but have fallen back so far in November. The oil market is slowly rebalancing, and prices are expected to trend upwards gradually over the coming years;
- There have been further signs that the intense downward pressure on passenger yields eased during the middle part of 2016, in keeping with the change in the trend of oil prices;
- The premium segment remains an important buffer for airline financial performance. Premium airfares have held up better than those in economy on many of the most important premium routes so far this year;
- Developments in passenger traffic continue to reflect the net influence of a number of factors. Traffic was resilient in September, and the seasonally-adjusted industry-wide load factor increased to a nine-month high.
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.
