14-Feb-2018 9:43 AM

IATA: 4Q2017 airline EBIT margins broadly unchanged year-on-year

IATA released (13-Feb-2018) its Airlines Financial Monitor for Dec-2017 to Jan-2018. Key points include:

  • Initial airline financial results from 4Q2017 indicate that the industry wide EBIT profit margin remained broadly unchanged year-on-year, at a "robust" 10.7% of revenues;
  • Global airline share prices rose by 2.9% in Jan-2018 with increases in Europe and Asia offsetting a modest decline in North America. The airline index has fallen broadly in line with the global equity market during the early Feb-2018 sell off;
  • Industry wide passenger yields in late 2017 were largely unchanged year-on-year. IATA forecast passenger yields will rise modestly in 2018 alongside a strengthening in global economic activity and rises in key input costs;
  • Oil prices rose to a three year high during Jan-2018 but fell back sharply in early Feb-2018 driven by record high levels of oil production in the US;
  • Passenger and freight increased volumes as a whole and are both carrying solid momentum into 2018. Passenger traffic grew 7.6% in 2017 and freight by 9%. Passenger load factor posted a record high of 81.4% for CY2017, while the freight load factor increased 2.5ppts;
  • Stronger global trade conditions helped support premium class demand. Premium's share of total international passenger revenues increased to 27% in the first 11 months of 2017, up from 25.9% for the same period in 2016. [more - original PR]

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