“Global Airlines’ Share Prices Toppled by 3% in May” – IATA

The International Air Transport Association, IATA, Airlines Financial Monitor showed that the global airline share prices dropped 3 per cent in May 2016, which have now fallen by nearly 11 per cent since the beginning of 2016.

According to the IATA’s Financial Monitor, the latest financial results continue to indicate a robust Q1 2016 for industry profitability.

The global aviation regulator in their key points indicated that airfares have fallen by around 5 per cent year-on-year in constant exchange rate terms in 2016 so far.

However, with oil prices up more than 80 per cent since January, IATA added that the stimulus to demand from lower airfares is likely to fade in H2 2016.

The international airline body observed that premium airfares continue to offer an important buffer for overall airline financial performance, and have held up better than their economy counterparts on many of the key premium routes so far this year.

The body noted that disruption from the Brussels terrorist attacks weighed on annual growth in air passenger traffic in April, although the global market made a robust start to 2016 this year to date; while annual growth in freight volumes jumped to 3.2 per cent in April, as the one-off boost to air freight from disruption at US west coast seaports in Q1 2015 dropped out of the annual comparison.

However, rising capacity and low freight loads are keeping intense pressure on cargo yields and revenues, IATA said.

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