Airline profits, yes, but a questionmark on growth

BTN News
Sunday, 26 July 2015

USA-based American Airlines has reported its most profitable quarter ever, but overall, airlines expect lower profit growth in the next 12 months, according to the latest survey by the International Air Transport Association (IATA).

Improvements in key drivers may well have "peaked earlier in the year" driven by better traffic volumes and falling costs such as fuel expenses, IATA said, adding that input costs still are expected to drop during the year ahead, but not by as much as was anticipated earlier this year.

Survey respondents reported declines in yields in both passenger and freight in the recent past and for the coming year.

Meanwhile, American said its second-quarter profit nearly doubled to US$1.7 billion on cheaper jet fuel, its most profitable quarter ever after excluding one-time costs and gains.

Its fuel bill dropped by more than US$1 billion.

Airline profits, yes, but a questionmark on growth

BTN News
Sunday, 26 July 2015

USA-based American Airlines has reported its most profitable quarter ever, but overall, airlines expect lower profit growth in the next 12 months, according to the latest survey by the International Air Transport Association (IATA).

Improvements in key drivers may well have "peaked earlier in the year" driven by better traffic volumes and falling costs such as fuel expenses, IATA said, adding that input costs still are expected to drop during the year ahead, but not by as much as was anticipated earlier this year.

Survey respondents reported declines in yields in both passenger and freight in the recent past and for the coming year.

Meanwhile, American said its second-quarter profit nearly doubled to US$1.7 billion on cheaper jet fuel, its most profitable quarter ever after excluding one-time costs and gains.

Its fuel bill dropped by more than US$1 billion.