IATA’s new edition of Airlines Financial Monitor has been released
IATA’s latest edition of Airlines Financial Monitor, released on 6 September, says that Q2 financial results show a 60% decline over last year, although Europe looks better against volcanic the ash-affected Q2 2010. Jet fuel prices are trending downwards, but are still 50% up on last year. Most forecasts project only a moderate further decline.
So far, air travel volumes are growing, but the outlook looks much weaker. Airlines have managed to restore passenger load factors to 2010 highs, but gains in passenger yields have slowed. Airlines tend to generate most of the year’s profit in Q3, but market conditions are now deteriorating, making that job more challenging.