IATA: Airline 4Q2016 airline financial results show decline in profitability continues

IATA released (09-Mar-2017) its Airlines Financial Monitor for Feb-2017. Key highlights include:

• 4Q2016 airline financial results show that the decline in profitability, which began in 3Q2016, continued across most regions in 4Q2016, albeit from historically high levels;
• Global airline share prices continued their positive start to 2017 during Feb-2017, outperforming the wider global equity market, as expectations for airlines profits improve, particularly in the US;
• Brent crude oil prices have been broadly stable since Dec-2016, trading within a very tight band of USD55-57 per barrel during Feb-2017. Oil prices are still expected to rise only gradually over the years ahead;
• Average passenger yields in USD terms continue to fall, but the recent strength of the USD may be disguising signs of a stabilisation or slowing of this down-trend;
• Passenger and freight demand both carried momentum into 2017. The industry-wide passenger load factor mains stable at a record high, and the freight load factor has continued to recover;
• Premium airfares generally held up better than those of the economy cabin in 2016, and premium's share of revenues increased on a number of key routes. This has helped to support airline financial performance. [more - original PR]