Airlines Financial Monitor (October 2011)

Released November 3rd, 2011, the following details key points from the IATA report 'Airlines Finanical Monitor October 2011':

• Airline share prices are still down almost 30% so far this year on gloomy financial market view of profits;
• However, there was a marked improvement in Q3 with profits at EBIT level slightly above last year;
• This is consistent with IATA's September upgrade of its 2011 industry profits forecast to $6.9 billion;
• Air travel rose significantly in September producing a strong third quarter and load factors were high;
• The deterioration in air freight during the third quarter was insufficient to offset better passenger markets;
• There were 98 new jets and turboprops delivered in September but seat additions slowed to a 4-5% rate;
• Jet kerosene prices were back to $128 a barrel, up 35% on last year, adding around 5% to costs in Q3;
• Tight conditions in passenger markets allowed further yield gains, offsetting fuel costs, helping Q3 EBIT;
• However, the outlook remains weaker than airline and market performance to date.

AITA 'Airlines Financial Monitor - October 2011'