IATA: Airline industry shows relatively good financial performance in 2Q2012

IATA released (03-Oct-2012) its Aug/Sep-2012 Airline Financial Health Monitor. Details include:

• Financial indicators:
  • Share prices: Up 4% in Sep-2012, slightly ahead of the market. European stocks gained 11%, Asia Pacific stocks just 0.5%;
  • Financial performance: 2Q2012 results showed relatively good financial performance, particularly in the US. Asia Pacific and Latin American carriers improved operating results but net results deteriorated. European airlines stood out with a substantial deterioration of their performance;
• Operational indicators:
  • Jet fuel prices: Retreated a little in Sep-2012 after sharp rebound from June lows;
  • Demand: Global air travel slowed further in Aug-2012, largely due to falling business confidence and slowing world trade growth;
  • Capacity: Continues to rise, but at a slightly slower pace than in previous months, in response to slowing demand. Air freight capacity has stated to decline, both by retiring fleet and reducing aircraft utilisation;
  • Load factors: Declined in recent months, but still at historically high levels. 3Q2012 load factors expected to weaken compared to 2Q2012;
  • Yields: The increase in passenger yields show signs of stalling in 3Q2012. Strong rise in US airline yields is showing signs of stalling. Worldwide fares have declined much of the year;
  • Aircraft deliveries: Increase in number of new aircraft seats slowed in Aug-2012. Annual growth in seats now down to 5%. [more - original PR]