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IATA NEWS : Airlines Financial Monitor - November 2010

posted Nov 29, 2010, 4:30 AM by Elaine Bell

Released 29 November 2010

Key points from our full report on
airline financial performance in October-November:

  • Financial markets positive about airlines with 12% share price rise past month and 37% rise so far this year, well ahead of market;
  • Q3 post-tax profits total almost $10 billion, with improvements in all regions including Europe;
  • Q3 operating profit reaches new peak in absolute dollars, though margin is lower than late-1990s cycle;
  • Air travel growing robustly into first month of Q4 at 10% rate, with little sign of slowdown so far;
  • Strength of travel in past two months, relative to capacity, has restored load factors to highs giving support to yields as well as unit revenues;
  • Fuel prices have moved to top of recent range but some offset may come from supply-demand conditions improving for passenger yields;
  • Freight markets not quite so positive with volumes and load factors still down on the peak reached in May, but both turned upwards in October;
  • After a very strong Q3 the start to Q4 looks positive.