The airline industry’s financial fortunes suffered blows in Q1 2019 from oil and jet fuel price increases and pressure on both premium and economy cabin yields, according to the April report of the Airlines Financial Monitor.
IATA’s Financial Monitor suggests that overall profits for the industry fell again in Q1 2019, compared to the same period last year, in initial financial results.
However, the outcome was mixed at the regional level, the report says. North and Latin America both enjoyed “broad stability” while Asia Pacific saw its profits picture improve. Europe, on the other hand, appeared to have suffered a significant weakening although the report noted that the sample to date was small.
Annual growth in industry-wide revenue passenger kilometers (RPKs) experienced the weakest annual outcome in nine years
Increased oil and jet fuel prices climbed again in April, driven by the ending of US sanction waivers on Iranian oil imports, and global base fare passenger yields continued their decline in February with both premium and economy yields under pressure, the report says.
Annual growth in industry-wide revenue passenger kilometers (RPKs) experienced the weakest annual outcome in nine years, at 3.1%. Freight volumes were 0.1% higher than a year ago, following a sharp annual fall of 4.9% in February.
There was better news from the global airline share index, which outperformed the wider equities market in April with better than expected earnings and earnings guidance in some regions.