The International Air Transport Association (IATA) has reported a 10.1 per cent drop in global airlines’ share price for the month of October 2018.
IATA in its latest in-house publication, Airlines Financial Monitor for October 2018, also said the global airline share price index underperformed in the wider equity market.
“Global airline share prices fell by 10.1 per cent in October – the biggest monthly decline since June 2016,” said the IATA report.
“Investor concerns over the impact of rising costs on industry profitability mean that the global airline share price index has underperformed the wider equity market by some margin since start-2018,” the report added.
Meanwhile, the initial airline financial releases for the third quarter (Q3) of 2018 by IATA indicated that the squeeze on profit margins from higher input costs persisted into the quarter, and points to a modest decline in free cash flow generation relative to Q3 2017 as well.
IATA also said that global passenger yields have continued to edge higher in recent months.
“The premium cabin has provided a useful buffer for airline financial performance over the past year or so. The industry-wide passenger load factor remains elevated by historical standards, although passenger demand momentum weakened in Q3,”the IATA report added.