Global airline share prices ended 2017 almost 29% higher


IATA releases the December report of the Airlines Financial Monitor. Highlights of the report are:

  • The industry-wide EBIT profit margin remained broadly unchanged in Q3 relative to a year ago, at a robust 14.7% of revenues. A decline in the margin in the North American region was partly offset by increases elsewhere.
  • Global airline share prices ended 2017 almost 29% higher than where they started, with sizeable gains for European and Asia Pacific airlines. Airline shares outperformed the global equity market by 7 percentage points.
  • Industry-wide passenger yields are currently broadly unchanged from where they were a year ago. Against a backdrop of robust global economic growth, and rising input costs, we forecast yields to rise modestly in 2018.
  • Indeed, oil prices continued to trend upwards into the New Year, driven by OPEC-led production cuts. At the time of writing, the Brent crude oil price is around $70/bbl – its highest level since December 2014.
  • Year-on-year growth in both passenger and freight volumes is carrying solid momentum into 2018, alongside elevated load factors: the seasonally adjusted (SA) passenger load factor rose above 82% for the first time on record in November, while the SA freight load factor is continuing to maintain levels last seen in late-2014.
  • The ongoing pick-up in global trade conditions is continuing to support premium-class demand, particularly on some key markets to, from, and within the important manufacturing region of Asia.

click here to read the full report:

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Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1979), beginning as a travel agent up through today as a publisher of eTurboNews (eTN), one of the world’s most influential and most-read travel and tourism publications. He is also Chairman of ICTP. His experiences include working and collaborating with various national tourism offices and non-governmental organizations, as well as private and non-profit organizations, and in planning, implementing, and quality control of a range of travel and tourism-related activities and programs, including tourism policies and legislation. His major strengths include a vast knowledge of travel and tourism from the point of view of a successful private enterprise owner, superb networking skills, strong leadership, excellent communication skills, strong team player, attention to detail, dutiful respect for compliance in all regulated environments, and advisory skills in both political and non-political arenas with respect to tourism programs, policies, and legislation. He has a thorough knowledge of current industry practices and trends and is a computer and Internet junkie.