Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 11): Global airline share prices rose 4% in July compared to June, buoyed by falling oil prices and strong Q2 financial results, according to the International Air Transport Association (IATA).

In its July Airlines Financial Monitor released yesterday, IATA said initial Q2 financial results showed a large improvement in profits across all major regions and particularly in the US.

It said crude oil prices fell further in July, pushed down by expectations of supply increases from Iran and the US – levels are down 54% on 2014 highs.

IATA said passenger yields in the US continue to fall and although the fall in fares elsewhere appears to have stopped, levels remain 13% down on a year ago.

It added that weakness in yields and fares reflects downward pressure from declines in fuel costs, stronger growth in capacity relative to demand as well as exchange rate distortions.

The IATA said that air transport volume growth moderated in June but the trend for 2015 remains robust – air freight volumes weakened further on declining trade activity.

“Growth in seats accelerated in June as new aircraft deliveries increased, surpassing expansion in demand.

“Air freight load factors were stable in June but remain at lows not seen since mid-2009. Passenger loads dipped slightly as growth in capacity outstripped the moderation in demand,” it said.

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