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[Published: Wednesday June 10 2015]

GENEVA, 10 June. (ANA) - Consumers benefit from lower oil prices with lower fares, more routes, and spend 1% of world GDP on air transport, according to the latest report of IATA.
Economic development big winner from the doubling of city pairs and halving of air transport costs in past 20 years.
Governments gain substantially from $116bn of taxation this year and from more than 58 million 'supply chain' jobs.
Equity owners see a far better 2015 with a 7.5% average airline ROIC, above the cost of capital for the first time.
Fuel use per ATK to fall a further 1.5% y-o-y, saving 11 million tonnes of CO2 emissions and $3 billion of fuel costs.
Load factors forecast to stabilize as capacity rises; new aircraft deliveries represent a $180 billion investment.
Jobs in the industry should reach 2.5 million, productivity will be up 3.2% and GVA/employee almost $97,000.
Infrastructure use costs are rising, plus inefficiencies in Europe alone add 2.9bn euro to airline costs this year.
North American region performs best with a 7.5% net post-tax profit margin in 2015. Africa weakest at just 0.8%

Worldwide airline share prices were up 12% in April on a year ago, despite some recent weakness owing to the strength of the US dollar and small increases in crude oil prices. Crude oil prices rose slightly in May, buoyed by slowing inventory growth in the US, but are still low (-40%) compared with highs in 2014. Initial Q1 financial results show strong gains in the US and a positive turn-around in Asia Pacific.
Passenger yields in the US are down 3% year-on-year and fares in other regions fell further, reflecting downward pressure from earlier declines in fuel related costs as well as exchange rate distortions.
Air transport volumes continue to expand robustly, while trend in FTKs flattens on weakening trade activity while
growth in seats accelerated in March due to fall in storage activity, but remains below expansion in volumes.
Air freight load factors dipped sharply in April but passenger loads continue upward trend.
Despite lower oil prices, airlines have been increasing capacity at a slower rate than growth in demand.- (ANA)

AB/ANA/ 10 June 2015 - - -


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