IATA's assessment of premium and economy travel in February.
Key points:
Key points:
- Airline shares gained 6% in February compared to January, in line with the broader market which rose 5%;
- Improvements in financial performance continue to support growth airline share prices, but recent developments in the Ukraine crisis could have adverse effects on markets as well as crude oil prices, going forward;
- Q4 financial results show solid improvements in operating profits, mostly in the US but in Europe also;
- Jet fuel prices were broadly flat in February, remaining within the 3 year range at $125/bbl;
- US passenger yields are stable on a year ago, but weakness continues in other regions;
- Air freight markets rose strongly in January, reflecting growth in world trade, and passenger travel growth has sustained a recent pick-up, driven by strength of emerging markets and improvements in advanced economies;
- Growth in available seats slowed in January, with new deliveries declining and aircraft returning to storage;
- This has helped sustain the recent rebound in passenger load factors, which have now risen back above 80%;
- Recent improvements in air freight loads have moderated, but remain well above the mid-2013 low.
