We are pleased to send you the February/March report of the Airlines Financial Health Monitor, prepared by the Economics Unit at the International Air Transport Association’s (IATA) in Geneva, Switzerland.
Key points:
- Financial markets signal confidence in upturn as airline share prices rise 10% so far this year;
- End-2009 airline financial performance better than expected, except for the industry in Europe;
- Fuel price averages US$86/b in Q1 but markets point to a rise over US$94/b by year end;
- Demand for air travel and freight continues to rise strongly above trend growth rates so far this year;
- Capacity being re-introduced at a cautious pace producing record load factors in February;
- As a result fares are 10-111% above mid-2009 lows, although premium fares are still 18% less than early 2008;
- Capacity restraint partly achieved by reducing aircraft utilization, slowing recovery of profits.
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