The latest Financial Monitor said the downturn continues to be affected by trade wars and Brexit.

Net post-tax profits for airlines weakened in Q1 2019 compared to a year ago, according to the latest statistics.

Publishing its latest Financial Monitor, The International Air Transport Association (IATA) said that year-on-year figures for Q1 have suffered a downturn.

At regional level, the performance is mixed with an improvement in Asia-Pacific and North America contrasted by negative bottom-line figures in Europe and Latin America.

Industry-wide revenue passenger kilometers (RPKs) rose to 4.3% in April, a 1.2% increase on March’s figures

May also saw global airline prices fall sharply, which would suggest that equity investors are forecasting tougher financial conditions in the coming months.

IATA said that concerns surrounding airline profitability come as a result of the rising threats of Brexit and trade wars between the US and China, causing the performance of airline index to diverge from global equity markets.

Looking at energy markets, the IATA Financial Monitor reported that oil and jet fuel prices suffered a sharp decrease at the end of May, owing to concerns over slowing global growth.

While global base fare passenger yields continued to decline in March, premium cabin yields edged up. 

In overall passenger figures, industry-wide revenue passenger kilometers (RPKs) rose to 4.3% in April, a 1.2% increase on March’s figures. However, freight volumes fell by 4.7% compared to the same period a year previous.

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