IATA: Yields and fares continue generally downward trend in 2016

IATA reported (Feb-2017) the following yield and premium passenger trends through its Airlines Financial Monitor for Dec-2016/Jan-2017. Key highlights include:

• Yields:
• • Downward trend in industry-wide passenger yields gathered pace again in 2H2016, continuing through Nov-2016 (representing the latest available data);
  • Yields are declining despite the upwards trend in oil and jet fuel prices - along with rising labor costs in some key markets - over the course of 2016;
  • Downward pressure on yields (based on USD denominated yield data) is still substantial, even after correcting for currency swings over the past two to three years;
  • Yields have now fallen by more than 9.5% year-on-year, although the general global industry yield figure masks substantial differences in individual markets.
• Premium markets:
• • Growth in top 10 premium passenger markets typically lagged that of the economy cabin for the year to Nov-2016. The sole exception was traffic on routes between Asia and the Southwest Pacific;
  • Premium origin-destination international journeys accounted for 5.8% of the global total over the 11 months to Nov-2016, down from 6.1% in the equivalent period in 2015;
  • Premium fares have fallen on most key routes, but have generally held up better than their economy counterparts, helping to support airlines' overall financial performance. [more - original PR]