IATA reports air passenger growth at a 12-year high

The financial outlook for airline carriers is improving, as passenger yields begin to reverse a multi-year downtrend and amid increased demand for premium passengers - especially in Asia - as global trade picks up, the International Air Transport Association (IATA) said in its June - July Airlines Financial Monitor.

The report said initial airline financial results for the second quarter of the year had been more "robust" than earlier in 2017, suggesting that a squeeze on profit margins as a result of higher costs and weak yields had seen its peak in the months leading up to March 28.

Airlines saw the strongest growth in half-year passenger traffic since 2005 and were taking to the air with a near record number of filled seats, according to IATA.

The financial monitor also showed global passenger numbers had taken off 7.9% during the first six months of the year, saying that this was due to a brighter global economic picture and lower airfares.

However, in seasonally-adjusted terms the trend in passenger demand had moderated in recent months while the industry drivers were indicating that the best part of the upturn in global freight volumes might have passed.

In a sample of 24 international carriers, IATA said post-tax profit had risen to $6.41bn over the three months to end June from the $5.78bn for the comparable year-ago period.

Yields rose slightly in July, for the first time since 2013.

Despite the price of Brent crude oil ending the month nearly 10% higher than where it had started, IATA anticipated future pricing would remain in line with predictions for a modest increase in prices for the medium term.

Year-to-date, premium revenues had improved on key routes to and from Asia.