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Airlines Financial Monitor - April 2011

posted May 5, 2011, 5:44 AM by Rowan Hewitt

Released 5 May 2011

Key points from our full report on
airline financial performance in March-April:



  • Airline share prices underperform by 17% so far this year as financial markets take a bearish view;
  • Early Q1 results show a net loss for airlines as profit margins are squeezed by higher fuel prices;
  • Jet prices above $140/b now approaching highs of 2008 but now, unlike then, economy seems stronger;
  • Air travel and freight markets depressed by recent events in Japan but expansion not over yet;
  • Capacity continues to expand faster than demand, now bringing load factors down sharply;
  • Passenger load factors have slipped back 4% points from their 2010 peak to below pre-recession levels;
  • Yields are rising as fares and surcharge increases are sticking so far, but some signs of demand impact;
  • Q2 likely to see further pressure on airline profitability from fuel prices and (temporary) demand weakness.

- IATA Economics -