Malaysian National News Agency
IATA: Global Airline Shares Up
July 13, 2017 15:25 PM
KUALA LUMPUR, July 13 (Bernama) -- Global airline shares have increased and outperformed the global equity index for the third month in a row in June, said the International Air Transport Association (IATA) in its June Airlines Financial Monitor released today.
IATA said the share prices had risen by over 20 per cent since the start of the year and were currently around 44 per cent higher than a year ago.
"The recent gains in airline share prices indicate that investors are continuing to look through the impact that squeezed profit margins has had on airline financial performance in the first quarter 2017, and are focusing instead on signs that the upward pressure on the breakeven load factor is easing.
"The resilience of US crude oil supply has continued to put downward pressure on oil prices. Brent crude oil prices fell back below US$50 (US$1 = RM4.28) per barrel during June and are currently broadly unchanged from levels seen a year ago," it said.
Meanwhile, trade association of the world's airlines said, although passenger yields remained around 4.5 per cent lower on year-on-year terms, the latest monthly data added to signs that the downward trend in yields has bottomed out.
The passenger and freight demand had both continued their strong start to 2017 with passenger load factor remained close to an all-time high, while the freight load factor recently recovered to its highest level since July 2014, it said.
"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," said IATA.
|Copyright © 2017 BERNAMA. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA. Disclaimer