Worldwide airline share prices rose 14% in November, supported by continued decline in the price of crude oil and jet fuel, according to the latest report from the International Air Transport Association (Iata).
Crude oil prices are down 36% since the mid-year peak, reflecting appreciation of the US dollar as well as continued growth in supply, particularly in the US.
[contextly_sidebar id=”dE9EqyMWGk7dN6nGadffH8dgsxqf3IPe”]US passenger yields remain up on a year ago, but weakness continues in other regions.
Air freight volumes continue to expand and the trend in air travel growth remains positive, supported by improving economic conditions in the US and strong trade growth in Asia Pacific.
Growth in available seats fell to an annualized rate of 1%, well below the pace of growth in demand, which should support aircraft utilisation rates.
Passenger load factors weakened slightly in October, but air freight load factors continue to show steady improvement on the back of growth in demand.
Airline shares outperformed the broader market by a significant rate.
Growth in airline share prices had weakened in the third quarter due to a combination of economic slowdown in key regions like the Eurozone and concerns over the spread of the Ebola virus.
The rise in airline share prices over the past two months reflects continued decline in crude oil and jet fuel prices.
Source: Fin24