LCC shares fell in trading yesterday, as IATA lowered its airline industry profit outlook from USD9.1 billion to USD8.6 billion. Fuel costs are expected to increase 19.4% year-on-year and overall costs are expected to increase 9.7%. Asia Pacific carriers fell the heaviest, with AirAsia down 6.3%, Virgin Blue losing 5.6% and Skymark falling 4.8%.
Details of IATA’s revised profit forecast for 2011 are as follows:
- Revenue: USD594 million, +7.6% year-on-year;
- Operating profit: 18.4 million, -32.8%;
- Net profit: USD8.6 million, -46.3%;
- Passenger numbers: 2570 million, +5.4%;
- Passenger yield: +1.5%;
Selected LCC daily share price movements (% change): 02-Mar-2011