Key points from IATA’s full report on airline financial performance in May-June:
* Global airline share prices held ground in June, but underperformed other industries despite a sharp fall in fuel prices;
* Q1 profits were significantly down on a year ago due to higher fuel prices earlier in the year, although North American airlines stood out with improved performance;
* But market conditions during the second quarter have been supportive for airline profits;
* In particular, oil prices fell further in June declining $30/bbl since the peak in Q1, as oil supply increased and global economic growth expectations fell further;
* Worldwide airline fares have fallen 2% this year, though the US is the exception as airlines in the region are managing to maintain higher yields with strong load factors;
* Air travel continued to expand through the second quarter, though there were signs of softness in May traffic, while seasonally adjusted air freight levels are still above the lows of late 2011;
* Asset utilization also weakened in May, passenger load factors fell as increases in capacity outstripped growth in demand, and cargo load factors contracted slightly but remained above the lows of late 2011.