Airline share prices fall as profits are squeezed

Sunday, 18 Jan, 2019 0

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.



 

profileimage

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



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...