Airlines Financial Monitor - January 2014

We are pleased to publish herewith the January report of the Airlines Financial Monitor. Key points: Airline shares gained 6% in January compared to December, outperforming the broader market which fell 4%; Airlines shares were unaffected by emerging market turmoil, buoyed by solid financial performance and lower fuel prices; Initial Q4 financial results show sustained improvement in profits, driven by performance of US airlines;  Jet fuel prices eased in January, but remain within 3 year range supported by improving demand for crude oil;  US passenger yields are stable on a year ago despite Q4 moderation, but weakness continues in other regions; Air freight markets improved in 2013 as business confidence and world trade picked-up, and passenger travel sustained growth at the solid 30-year growth trend (%5+), reflecting strong performance of emerging markets; Growth in available seats rose strongly in December, as new deliveries and stored aircraft entered the fleet;  But passenger load factors rebounded as a result of a fast expansion in volumes, rising above 79%, globally; Air freight loads paused their recent improvement, but remain at 2013-highs despite being barely above 45%.  View full report