IATA: Airline financial performance improved in late 2015, fares and load factors falling in 2016

IATA released (11-Apr-2016) its 'Airlines Financial Monitor' for Feb/Mar-2016:

• Global airline share prices continued their recovery in Mar-2016, from the decline seen in Jan-2016. Airline shares underperformed the wider equity market modestly in Mar-2016;
• 4Q2015 airline financial results reports further cemented the picture of a strong end to 2015, driven by carriers in North America. Financial performance improved in all regions relative to 4Q2014 except Latin America;
• Crude oil prices gained in Mar-2016, although the market currently expects them to stay below USD50 per barrel until late - 2019. Oil prices are still around 30% lower than this time in 2015;
• Further falls in air fares are likely to be seen in 2016 as hedging contracts unwind and the decline in oil prices seen towards the end of last year feed s through. Exchange rate adjusted fares fell by 6.2% year-on-year in Jan-2016;
• The global air passenger market is enjoying a strong start to 2016. Passenger loads have slipped in recent months, though, which will require monitoring;
• Air freight volumes in the first two months of 2016 fell by 1.5% year-on-year , although the comparison is complicated by the one - off boost last year from disruption at US west coast seaports. The freight load factor for the period was well below average for the time of year, keeping cargo yields under pressure. [more - original PR]