Strong end to airlines' 2015, but air cargo struggling
BTN News
Tuesday, 15 March 2016
The latest International Air Transport Association (IATA) airline financial results from Q4 2015 continue to point to a strong end to 2015, led by carriers in North America.
By contrast, challenging economic conditions have taken a toll on Latin American carriers’ performance.
A spokesperson for IATA said crude oil prices have rallied in recent weeks, driven by market expectations of a tightening in supply.
“However, the bigger picture is that oil prices are still some 30 per cent lower than they were this time last year.”
After adjusting for distortions related to the rise in the US dollar over the past 18 months or so, global air fares fell by around four to 4.5 per cent in 2015.
The spokesperson said: “Further falls in air fares are likely to be seen in 2016 as fuel hedging contracts unwind and the decline in oil prices seen towards the end of last year feed through.”
The global air passenger market made a strong start to 2016, with most regions posting record-high passenger load factors for the month of January.
The cargo side of the business made a reasonably solid start to 2016 by its standards, although challenges remain. The freight load factor remains rooted near a six-year low, keeping intense pressure on cargo yields.
Strong end to airlines' 2015, but air cargo struggling
BTN News
Tuesday, 15 March 2016
The latest International Air Transport Association (IATA) airline financial results from Q4 2015 continue to point to a strong end to 2015, led by carriers in North America.
By contrast, challenging economic conditions have taken a toll on Latin American carriers’ performance.
A spokesperson for IATA said crude oil prices have rallied in recent weeks, driven by market expectations of a tightening in supply.
“However, the bigger picture is that oil prices are still some 30 per cent lower than they were this time last year.”
After adjusting for distortions related to the rise in the US dollar over the past 18 months or so, global air fares fell by around four to 4.5 per cent in 2015.
The spokesperson said: “Further falls in air fares are likely to be seen in 2016 as fuel hedging contracts unwind and the decline in oil prices seen towards the end of last year feed through.”
The global air passenger market made a strong start to 2016, with most regions posting record-high passenger load factors for the month of January.
The cargo side of the business made a reasonably solid start to 2016 by its standards, although challenges remain. The freight load factor remains rooted near a six-year low, keeping intense pressure on cargo yields.
