International Air Transport Association (IATA), in its Airline Financial Monitor for Jan/Feb-2010, commented that airlines have "outperformed the market so far this year and, in the European and Asia Pacific regions, have kept pace with the market in the upturn of the past 12 months”.
IATA noted that airline stocks on a worldwide level have risen by 1-2% in 2010, and are over 50% above their Feb-2009 lows, due to improved demand conditions and financial performance in 4Q2009. IATA stated investors “see airlines as a cyclical play and the industry has benefited as the economic recovery continues". The industry body added that this “allowed another USD1 billion of cash to be raised from debt so far this year and some equity from Tiger Airways' IPO”.
Bloomberg airlines share price index: Oct-2004 to Feb-2010
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.