Airline stock prices face an uncertain future, after a bumpy start to 2009. IATA stated that airline equity valuations have now halved in the past 12 months, following a further 9% fall in Jan-08, citing the Bloomberg global airline index.
According to IATA, "this was a similar decline to overall stock market indices and reflected the end year hope generated by policy stimulus, followed by disappointment as deepening recession grew". The industry body added, "the bottom line is that financial markets are not sure whether the bottom is yet in sight".
Bloomberg global airlines index: Jul-05 to Jan-09