IATA reports airline improvements
Helen YoungAccording to the International Air Transport Association (IATA), signs of improvement have been experienced in the global financial performance of commercial carriers between July and September of this year.
But Europe, which lagged behind other world regions, didn’t seem to have seen the same rate of improvement.
International airline equity prices have increased 15% during the beginning of the year and profits also rose, IATA said.
Seventy-five major commercial global airlines stated a net profit of $700m the third quarter of 2009. The same quarter in 2008 had experienced a net loss of $3.4bn.
Carriers based in Europe did not experienced any improvement, but they did report a net post-tax profit during the third quarter of the year of only $563m, in comparison of $1212m for Q3 2008.
A lot of ground must be recovered with carriers only valued at 50% of their 2007 high, claimed IATA.
The association said a 2009 net loss of $11bn is very likely.
As the passenger capacity is lowered on major international carriers throughout 2008 and 2009, load factors of passengers have increased, heading they way to fare increases in recent months.
According to IATA, airlines are not putting to use their full fleets in order to improve passenger load factors, with airliner usage down 6%.
August saw a jump in fares as high load factors signified low fare categories did not require to be held open for as long.
Because of intense competition, passenger yields currently remain low, especially on premium fares seats.
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Filed under Business & Finance, Europe News, Travel News, World News