Airlines Financial Monitor - March 2011
Released 31 March 2011
Key points from our full report on
airline financial performance in February-March:
- Airline share prices have lost 10% so far this year, as financial markets worry about the exposure to oil;
- Fuel costs had already begun to squeeze airline profits in 2010Q4, when improvement slowed sharply;
- Jet fuel prices, at $134 a barrel, now triple early 2009 levels as supply shocks add to demand pressure;
- International air travel and freight markets were hit in February by political instability in North Africa and Middle East. International traffic figures estimated to have been distorted by about 1%;
- Capacity expanded at a higher pace than demand producing lower load factors limiting scope for cost recovery;
- Passenger yields have risen since September, but by only around one-tenth of the 70% rise in fuel prices;
- Fleet in service continued to expand with new deliveries.
- IATA Economics -
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