IATA airlines finanacial monitor Oct/Nov 2009

Airlines add US$2.5bn more to their cash cushion while markets become more cautious about the outlook. Airline financial performance starts to improve in Q3, but US$11 billion 2009 net loss still looks likely. Jet fuel price much lower than 2008Q3 but has been on a rising trend this year and now above US$80/b. Air transport demand back to year earlier levels, but only half of 2008 traffic decline recovered so far. Airlines continued to cut capacity through year, raising load factors back to pre-recession levels. Average fares and cargo yields are slowly turning up as a result of stronger cyclical conditions. However, aircraft utilisation is down 6% as fleet grows and corporate buyer behaviour may have changed.