Carriers see finances improve: IATA

Initial Q2 financial results show strong gains for US airlines’ performance, but declines in Asia Pacific due to cargo revenue weakness and cost pressures for Chinese carriers from the depreciating Yuan.


Carriers see finances improve: IATA


Initial Q2 financial results show strong gains for US airlines’ performance, but declines in Asia Pacific due to cargo revenue weakness and cost pressures for Chinese carriers from the depreciating Yuan. Air travel volumes continue to expand steadily and air freight demand recorded a solid increase in July, supported by improving conditions in Asia, including a rebound in trade volumes; Air freight capacity has stabilised while passenger capacity continues to expand, IATA noted. There was a 0.6 percentage point increase in air freight load factors in July compared to June, which has reversed the declining trend seen during the recent past months. The pick-up in demand in July compared to June was met with a contraction in capacity, which caused loads to increase solidly.

The rise in passenger capacity came mostly through a strong increase in ASKs on international markets in July compared to June. Growth in demand was weaker and resulted in a fall in load factors over the month. Air freight capacity stabilised in June with a slight decline compared to May. But the trend over recent months has shown resumption in growth in AFTKs, which is consistent with renewed signs of improvement in the demand environment.