KUALA LUMPUR, Sept 15 ― Global airline shares in the second quarter 2018 (Q218) declined in airline profitability compared to the same quarter last year, said the International Air Transport Association (IATA) in its July-August 2018 airline financial monitor.
IATA said airline shares are still 10 per cent lower than the beginning of the year versus a modest 1.7 per cent rise in global equity.
“The latest airline financial data for Q2 2018 reaffirms the signs of a fall in profitability. The earnings before interest and taxes (EBIT) margin for our sample of 70 airlines dipped to 7.5 per cent in Q2 2018 from 10.6 per cent last year,” it said in a statement today.
It also noted that global airline share prices edged higher in August, matching the wider equity index, and consolidating the strong gains recorded in July.
“This month's improvement in airline share price index was driven solely by the North American carriers,” it said.
Meanwhile, the trade association of the world’s airlines said, although passenger yields continue to trend lower overall, premium cabin yields however continue to show more resilience than economy cabin, helping to offset some of the impact of higher input prices.
“Passenger demand has remained robust at the start of the peak northern hemisphere summer period, but freight demand has slowed, slipping below the pace of capacity growth,” it said.
As for the fuel cost, IATA said prices were steady in August, even with a modest dip.
“Oil prices eased slightly in August, but the uptrend remains in place. Jet fuel remained steady in August at just under US$90 (RM372) per barrel,” it said. ― Bernama
