Airline Shares Down 3.2 Per Cent In July, Says IATA
August 15, 2017 18:17 PM
KUALA LUMPUR, Aug 15 (Bernama) -- Global airline share prices fell 3.2 per cent in July, the first monthly fall since March, said the International Air Transport Association (IATA) in its July Airlines Financial Monitor released today.
Having risen by nearly 15 per cent over the previous three months and outperforming the global equity index over the past year, the monthly decline in airline shares was likely to reflect a degree of profit taking by investors.
"Brent crude oil prices rose above US$50 per barrel in July and ended the month nearly 10 per cent higher than they started it. Nonetheless, the futures market remains consistent with just a modest increase in prices over the medium-term," said IATA.
Meanwhile, the trade association of the world's airlines said, passenger and freight demand growth posted their strongest first half of the year since 2005 and 2010, respectively.
The seasonally-adjusted passenger load factor remained broadly stable, close to an all-time high over the same period, while the freight load factor recovered to its highest level in more than two-and-a-half years, it added.
"The pick-up in global trade is helping to support premium passenger demand, particularly to, from and within Asia Pacific. Premium revenues have risen, in year-on-year terms, on key routes to and from the region so far in 2017," added IATA.