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

April 14 2021

Kavalan sweeps Icons of Whisky,…

Kavalan has beaten out the competition to claim two prestigious Icons of Whisky 2021 awards: “Visitor Attraction” for Kavalan…

By Laura Shirk

April 13 2021

Champagne Lanson & Enoteca Shanghai…

We are extremely pleased to announce a long-term sales and marketing agreement with Enoteca Shanghai starting on April 1,…

By Laura Shirk

April 13 2021

Luxottica expands its sustainable…

Luxottica Group, a leader in premium, luxury and sports eyewear, has announced that it is expanding its offering of sustainable…

By Laura Shirk

April 12 2021

Michael Pasternak joins Duty Free…

Well-known industry veteran Michael Pasternak will be working with Barry Geoghegan’s Duty Free Global as a consultant for…

By Laura Shirk

April 12 2021

Rituals Cosmetics teams up with…

During Earth Week this year, Rituals Cosmetics will be joining hands with EARTHDAY.ORG on its…

By Laura Shirk

April 6 2021

MONARQ’s Social Club increases…

​Heading into Q2 of 2021, MONARQ Group is focusing on its social media presence. The company recently recruited a full-time…

By Laura Shirk

April 5 2021

CircleSquare outlines the future…

Founded in 2003, CircleSquare is a brand experience agency made up of a global network of creative people blending art &…

By Laura Shirk

April 5 2021

FILTR.QINGWA discusses digital…

With the launch of the 2021 Summit of the Americas – A Virtual Experience, Americas Duty Free reached out to the team at…

By Laura Shirk

March 30 2021

Rhum Barbancourt & MONARQ Group…

Rhum Barbancourt, a family-owned distillery established in 1862 by Dupré Barbancourt, and MONARQ Group, leading independent…

By Laura Shirk

Copyright 2021 DutyFree Magazine. All rights reserved. Privacy Policy Sitemap