IATA: Initial 1Q2020 financial results confirm expected negative effects of COVID-19

IATA reported (20-May-2020) the following key highlights from its Airlines Financial Monitor for Apr-2020:

• Initial 1Q2020 financial results confirm the expected significant deterioration in industry-wide profitability amidst the negative impact of the coronavirus outbreak on air travel. The outcome was driven by Asia Pacific airlines, however EBIT margins also deteriorated in Europe and North America;
• Global airline share prices moved higher in Apr-2020, reflecting government support to the industry and airline announcements about restarting part of their operations. Oil and jet fuel prices also ticked up as demand for fuel lifted amidst lockdown easing and the introduction of OPEC+ planned output cuts;
• Global passenger yields fell sharply in Mar-2020, down 11% year-on-year, reflecting declines in both the premium and economy cabins;
• In Mar-2020, the impact from the COVID-19 crisis on aviation worsened significantly as the virus spread worldwide. Passenger demand and the load factor fell sharply. Two thirds of the global passenger fleet was grounded;
• The cargo market continued to provide some relief to carriers, with the cargo load factor rising 4.8pp in Mar-2020. [more - original PR]