Airlines Financial Monitor - June 2015

07-Jul-2015

• Airline share prices have been falling because of investor profit taking, particularly in the US, but in June they were still up by 10% compared to a year ago;
• Q1 financial results show large improvement in profits, especially for US carriers but also in Asia Pacific;
• Crude oil prices fell in June after a little rally in May, pushed down by expectations of supply increases from Iran and the US - levels are now down 45% on 2014 highs;
• Passenger yields in the US are down 5% year-on-year and fares in other regions have fallen further, reflecting downward pressure from earlier declines in fuel related costs as well as exchange rate distortions;
• Air transport volumes continue to expand robustly, while trend in FTKs stays flat on weakening trade activity;
• Growth in seats accelerated in May as more aircraft came out of storage, surpassing expansion in demand;
• Air freight load factors fell further in May, sinking to levels not seen since mid-2009, but passenger loads were sustained above 80%.

Refer to full documentation in attachments box, located at the top left, below the headline.