Global airline shares up: IATA
Published on: Friday, July 14, 2017
Kuala Lumpur: 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. 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.
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"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.Stay up-to-date by following Daily Express’s Telegram channel.
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"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. –Bernama
