AIRLINE share prices fell 6.9 per cent in April, ending the month over eight per cent less than levels seen beginning this year, according to an IATA financial report.
The dip erased gains experienced from February and March with airline shares underperforming the wider equity market significantly last month. IATA attributes the lacklustre performance to investor concerns about declining yields and industry profitability.
The region that saw the biggest month-on-month slide was North America at 12.5 per cent, while airlines in Europe and Asia-Pacific saw more modest declines at 3.8 per cent and 3.1 per cent respectively.
Passenger load factors also gave no respite for airlines in 1Q2016, with numbers mirroring that of 1Q2015, while seasonally-adjusted loads slipped in February and March.
Despite the setbacks, overall year-on-year performance still indicate growth, with post-tax profits from 1Q2016 being 12 per cent higher compared to the same period in 2015, and global passenger traffic seven per cent higher.
A better picture of the aviation industry will emerge as more airlines reveal their first quarter financial results in the coming months, added IATA.
