Airfreight volumes increase slightly
Worldwide airline share prices fell 2 percent in July compared to June, but in line with performance of the broader market, according to the airlines financial monitor from the International Air Transport Association.
Airfreight volumes increased slightly in June compared to May. The improvement in demand is consistent with resumption in improvements in key demand drivers.
Increases in world trade and business activity flattened in Q1 after solid gains at the end of 2013, but latest data suggest there is a renewal in the upturn.
Similarly, volumes have also benefited from an improving demand environment. The rise in volumes in June compared to May was slightly slower than the previous month, but the outlook is of solid growth ahead.
Air cargo capacity stabilized in June with a slight decline compared to May.
Initial Q2 results indicate that airlines are continuing to improve financial performance. The sample of 22 airlines shows a significant increase in operating profits and net profits, driven by the performance of North American airlines. By contrast, in Asia Pacific, a combination of weakness in cargo revenues as well as rising cost pressures for Chinese carriers due to a depreciating local currency have had negative effects on regional financial performance.
Jet fuel prices eased slightly in July, falling 4 percent compared to June.