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]