16 Sep 2015 03:41
(UTC)
Source:
Aviationpros
Finance
US, Asia-Pacific Lead Airlines' Profit Surge
The financial results posted by additional airlines further underscore a significant improvement in second-quarter profitability.
A sample of 58 airlines around the world by the International Air Transport Association (IATA) showed a 95.6% jump in net profit and a 41.7% rise in operating profit.
Those airlines made US$8.78 billion in aggregate post-tax profit in the April-June period, up from $4.49 billion in the same period the year before.
In terms of operating profit, they recorded $12.3 billion, up from $8.66 billion.
The results seen in IATA's latest financial monitoring of airlines reflects a similar pattern in the organisation's August report, which featured a sample of 25 major international carriers.
That report showed operating and after-tax profits rising by 28.8% and 70.8% to $9.12 billion and $6.91 billion, respectively.
IATA said in the latest report that airline financial performance improved strongly up to midyear.
The second-quarter surge in airlines' profitability was spurred by North American carriers, whose consolidation and lower fuel costs resulted in a significant boost to profitability.
Those 13 carriers contributed 64% of the aggregate net profit recorded in the second quarter or $5.64 billion.
Asia-Pacific airlines were also up on year-earlier levels, supported by cost-cutting measures and easing pressure from fuel costs.
The 23 carriers in the region made $1.84 billion in net profit.
South American airlines, by contrast, struggled with falling yields and a recession in major economy Brazil.
The seven airlines surveyed on that continent suffered a net loss of $105 million compared with $57 million in the black a year ago.
A grouping of 13 European airlines saw combined net profit rise to $1.39 billion from $1.02 billion in the year-earlier period.
The global net profit forecast issued by IATA in June predicted $29.3 billion in earnings for all of 2015, up from a previous projection of $25 billion and the actual $16.4 billion registered last year.