Airline share prices fall as profits are squeezed
Airlines are facing a further squeeze on profit margins due to higher costs, according to international airline body IATA.’
As a result, share prices fell 10% in December, offsetting a similar rise in November.
IATA’s latest financial monitor, covering the third quarter of the year, reveals airline passenger yields are under pressure, although yields in the less price-sensitive premium cabins are up.
Industry-wide revenue passenger kilometres was up 6.2% year on year in November, but capacity rises of 6.8% have outstripped rising demand, leading to a fall in the industry wide load factor to 80%, which was only the third fall in two years.
IATA warned there are signs that traffic growth is slowing due to a potential slowdown in global economic expansion.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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