IATA, its May/Jun-2012 Airlines Financial Health Monitor, stated (04-Jul-2012) jet fuel prices have eased back to levels seen in late 2010, 20% below the peak earlier this year. Crude oil prices tipped below USD100/bbl in Jun-2012 for the first since Feb-2011. Saudi Arabia continues to increase crude oil supply, in efforts to keep prices down and support the global economy. The increases in oil stocks by Saudi Arabia is more than offsetting any fall in output from Iran. Separately, IATA stated fuel prices for the week commencing 22-Jun-2012 stood at USD112.2/bbl, marking a 1.9% week-on-week decline, a 8.3% month-on-month decline and a 9.0% year-on-year decline. [more – original PR]
IATA notes easing of jet fuel prices back to levels seen in late 2010
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Gol warns capacity imbalance created by competitors could pressure yields in Brazil
Brazil’s largest domestic airline, Gol, is maintaining a cautious outlook for 2017 as concerns about capacity additions by Azul and Avianca Brazil create an overhang for a recovery in the country’s domestic market. Gol and its main competitor LATAM Airlines Brazil have maintained a rational supply during the last couple of years, but forward looking schedules for 2017 show double digit ASK growth for Azul and Avianca Brazil year-on-year in early May-2017.
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Although the corporate market within Brazil remains in tenuous shape, Gol believes it has expanded its share among business travellers – driven in part by network changes it adopted in 2016 to make schedules more attractive to corporate customers. However, the size of Brazil’s corporate travel market remains stagnant, and predicting expansion of business travel remains difficult.