IATA releases Airlines Financial Monitor for Nov/Dec-2017

IATA released (17-Jan-2018) its Airlines Financial Monitor for Nov-2017 and Dec-2017. Key highlights include:

• Industry wide EBIT profit margin remained broadly unchanged year-on-year in 3Q2017, at 14.7% of revenues. A decline in the margin in the North America region was partly offset by increases elsewhere;
• Global airline share prices ended 2017 almost 29% higher than where they started, with sizeable gains for European and Asia Pacific airlines. Airline shares outperformed the global equity market by 7ppts;
• Industry wide passenger yields are currently broadly unchanged year-on-year. Against a backdrop of robust global economic growth, and rising input costs, IATA forecasts yields to rise modestly in 2018;
• Oil prices continued to trend upwards into the New Year, driven by OPEC-led production cuts. At the time of writing, the Brent crude oil price is around USD70 per barrel - its highest level since Dec-2014;
• Year-on-year growth in both passenger and freight volumes is carrying solid momentum into 2018, alongside elevated load factors: the seasonally adjusted passenger load factor rose above 82% for the first time on record in Nov-2017, while the seasonally adjusted freight load factor is continuing to maintain levels last seen in late 2014;
• The ongoing pick up in global trade conditions is continuing to support premium-class demand, particularly on some key markets to, from, and within the important manufacturing region of Asia. [more - original PR]