KUALA LUMPUR (Jan 14): Worldwide airline share prices were up 3% in December compared to November supported by further falls in fuel prices, according to the International Air Transport Association (IATA).

In its December 2015 airlines finance monitor released Jan 12, the IATA said financial performance of the airline industry has remained solid, but mostly driven by the US and Europe.

It said airlines in other regions are showing declines in Q3 compared to a year ago.

The association said crude oil prices closed the year at around $38/bbl, reflecting intensified concerns over excess supply as well as a softer demand outlook.  

IATA said passenger yields in the US continue to fall and although the US dollar appreciation has exaggerated declines in global fares, currency-adjusted levels are also down, by 5% year-to-date.

It explained that weakness in the currency-adjusted yields and fares reflects downward pressure from factors including the decline in fuel costs and stronger growth in capacity relative to demand in some regions.

“RPK volumes continue positive trend and FTKs show more signs that recent declines are bottoming out.

“Growth in the number of seats rebounded in November, but still at a slower rate than growth in demand, which should help support aircraft utilisation rates.

“Passenger loads reached a new record high (81.2%, seasonally adjusted) in November and freight load factors improved slightly, 0.6% month-on-month,” it said.