IATA: Airline financial results improving in robustness as the year continues

IATA released (Aug-2017) its 'Airlines Financial Monitor' report for the Jun-2017 to Jul-2017 period. Key highlights include:

• Initial 2Q2017 airline financial results "have been more robust than earlier in the year, and suggest that the squeeze on profit margins from higher costs and weak yields peaked" during 1Q2017;
• Passenger yields have now started to trend upwards, after trending downwards since 2013. Exchange rate adjusted yields were broadly unchanged year-on-year in May-2017;
• Global airline share prices fell in Jul-2017, driven by a decline in the North America index. Having seen airline shares outperform global equities over the past year, the Jul-2017 decline appears, in part, to reflect profit taking by investors;
• Brent crude oil prices rose back above USD50 per barrel in Jul-2017 and ended the month nearly 10% higher. The futures market remains consistent with a modest increase in prices over the medium term;
• Passenger and freight demand growth posted their strongest growth for the first half of a year since 2005 and 2010 respectively. Seasonally adjusted passenger load factor remained broadly stable close to an all time high over the same period, while freight load factor recovered to its highest level in more than two and a half years;
• The pick up in global trade is helping to support premium passenger demand, particularly to, from and within Asia Pacific. Premium revenues rose year-on-year on key routes to and from the region so far in 2017. [more - original PR]