Key points of new IATA Airlines Financial Monitor

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The IATA  Airlines Financial Monitor covers the following key points:

  • The latest airline financial results indicate that the industry-wide EBIT profit margin was a robust 8.6% of revenues in Q4 2017 – broadly unchanged compared to the same period in 2016.
  • Having fallen broadly in line with global equities during the market sell-off in early-February, global airline shares rebounded to a greater extent over the second part of the month, driven by gains in the Asia Pacific index.
  • Industry-wide passenger yields are currently trending broadly sideways. We continue to forecast passenger yields to rise moderately in 2018 alongside a robust global economic backdrop and increases in key input costs.
  • Oil prices fell back from recent highs in February, alongside wider volatility in financial markets and rising levels of oil production in the US. That said, the Brent crude oil price remains around 16% higher than it was a year ago.
  • Temporary factors including Lunar New Year contributed to year-on-year growth in passenger volumes slowing in January. However, the bigger picture is that both passenger and freight traffic carried momentum into 2018.
  • In 2017, the premium cabin accounted for 5.3% of total international origin-destination passenger traffic, but 27.2% of revenues, up from 25.9% in 2016. Premium-class demand has been supported by stronger global trade activity.

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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.