Loading
4-Oct-2012 1:27 PM

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]

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More