IATA posts its July Airline Financial Monitor

Eleanor Steed
By Eleanor Steed August 17, 2018 16:42

IATA posts its July Airline Financial Monitor

The July report of the International Air Transport Association’s Airlines Financial Monitor shows a moderate squeeze on airline profitability for the second quarter of 2018 compared to the same quarter a year ago. However, industry-wide cash flow generation increased this quarter compared with Q2 2017.

Global airline share prices rose for the first time since January and outpaced developments in the overall global equity index. The improvement in the airline share price index was dominated by North America, with modest gains in Europe & Asia Pacific. Airline shares are still 10% lower than at the beginning of this year.

Oil prices eased slightly again in July, but the upward trend remains in place. Jet fuel prices dipped back below US$90/bbl this month, but remain almost 40% higher than their level of a year ago.

Notwithstanding rising input costs, there are signs of renewed downward pressure on passenger yields. Yields in the less price-sensitive premium-class cabin have generally proven to be more resilient than the economy cabin, despite signs of weakness in May.

Passenger demand carried solid momentum into the peak Northern Hemisphere summer period, but freight demand is showing signs of some moderation, says the IATA report.

Eleanor Steed
By Eleanor Steed August 17, 2018 16:42