July 15 2014  |  International News

IATA says worldwide share prices fell in June because of fuel prices

By Wendy Morley

While air passenger loads increased in May, cargo loads decreased slightly

Jet fuel prices rose 4% in June because of concerns about the conflict in Iraq, and this caused a worldwide 2% drop in airline shares though the FTSE Global All Cap saw an increase of 3% in the same time period. European airlines also saw weakness in their quarterly financial results, and therefore witnessed a share drop of almost 9% in June compared to May, though US and Asia-Pacific remained stable.

Despite this, airlines are showing an improvement in financial performance, especially at the operating level. North American airlines in particular show strong performance, contrasting with Asian airlines, which have seen a decrease in cargo revenues and depreciating local currency.

The US economy, recovering both in general and from a weather-related downturn this winter, is trending up. Passenger yields have improved in the second quarter of 2014. The IATA expects this trend to continue.

That positive direction is not the case in other regions. Decreasing trends in global fares do not show signs of abatement, reflecting both weaknesses in Asia and exchange rate distortions.

Freight markets have aided the airlines’ revenue stream, increasing slightly in May over April. This is consistent with an increase in world trade volumes and in the business confidence index. The industry has also seen an increase in demand, with air travel volumes up 6% year-on-year April to May.

Passenger load factors increased in May over April, remaining at close to 80%, though air freight load factors decreased slightly in the same time. This decrease was, however, caused by an increase in capacity, not by lack of demand. 

Brand News

November 19 2019

Absolut launches recycled limited…

​Longtime sustainability advocate Absolut is excited to announce the launch of its Absolut Recycled bottle: a limited-edition…

By Jas Ryat

November 18 2019

Imperial Brands to present its…

​Imperial Brands and its flagship brand Davidoff cigarettes will be proudly sponsoring this year’s MEADFA Conference in Muscat

By Jas Ryat

November 18 2019

Molton Brown wins praise for innovative…

London’s leading luxury fragrance expert, Molton Brown, demonstrated its strong commitment to the travel retail market with…

By Jas Ryat

November 18 2019

ABERFELDY drives category innovation…

Bacardi Global Travel Retail has partnered with Dubai Duty Free in the launch of ABERFELDY 19YO Exceptional Cask as the latest…

By Jas Ryat

November 18 2019

Lancôme and DFS mark a decade of…

Lancôme Travel Retail Asia Pacific has introduced its New Advanced Génifique serum at the Lancôme…

By Hibah Noor

November 18 2019

SEIKO commemorates “Day of the…

​On November 1, Duty Free Dynamics (DFD) re-activated its SEIKO pop-up shop at Dufry’s high-end, luxury brands store, Mexico…

By Jas Ryat

November 15 2019

Diageo shares a lesson in achieving…

​Looking back on a general year in review, Diageo highlighted the shining lights of its diverse brand portfolio, identified…

By Jas Ryat

November 14 2019

Beam Suntory's innovation game

Launching its latest phase at the TFWA World Exhibition 2019, Beam Suntory promotes phase by phase innovation and the best…

By Jas Ryat

November 14 2019

Distell celebrates CSR and elephant…

Money raised from the sale of Amarula is helping fund lawyers on the frontline battling to bring elephant poachers in Africa…

By Chris Madden

Copyright 2019 DutyFree Magazine. All rights reserved. Privacy Policy Sitemap