Just last month, American Airlines released a statement reporting that it had achieved its “highest quarterly profit in company history”, with a $1.9billion net profit that equated to a 27 per cent year-on-year improvement for Q2.
And, yesterday (August 10) welcomed a new flurry of good news from airlines both far and wide.
Africa’s pan-continental airline, fastjet was among the record-breakers, reporting its highest passenger numbers to date, having achieved a 36 per cent increase in traffic in July 2015 compared to July 2014.
While KLM also had something to shout about with an increase in passenger activity by 2.4 per cent, bringing the total number of passengers travelling with the group’s airlines (KLM, Air France, Hop! and Transavia) to 8.9million.
So, unsurprisingly IATA’s Airlines Financial Monitor report for July shows that airline share prices rose by four per cent last month, compared to June.
Thus it seems the market is truly thriving off the reduction in price of crude oil, which has been pushed down further by expectations of supply increases from Iran and the U.S, according to IATA’s latest statement.
Indeed, levels are down 54 per cent compared to 2014 highs and the trend looks set to continue, for now at least.
IATA’s report states that: “industry financial performance improved significantly on the year ago period at the operating and net profit level.” An increase that was driven by North American airlines, where consolidation and lower fuel costs have resulted in a significant boost to profitability.
In addition, airlines in Asia-Pacific and Europe are also showing improvement year on year.
But despite airline’s profits soaring and oil prices remaining at a low, the industry is yet to reward passengers with as significantly slashed airfares.
And, as it is the desire of passengers to visit far-flung shores that keep such carriers off the ground surely it’s about time fares were more reflective of the surge in profits.