Initial financial data shows that global airlines' profitability remained robust in the third quarter, albeit easing slightly from a year ago.
A sample of 26 airlines analysed by the International Air Transport Association (IATA) revealed a 16.3% margin in earnings before interest and taxes (Ebit) in July-September, down from 18.2% in the same period last year.
Asia-Pacific was the only of four geographical regions whose airlines displayed upward increase in the Ebit margin, to 14.7% from 11.9% previously to match that of North American airlines.
European carriers, despite easing a little, have the highest margin, at 20.3%, from 22.2% a year ago.
North American airlines' Ebit margin dropped to 14.8% from 17.5%, according to the latest IATA financial monitor report.
Highlighting the challenging operating conditions in the region, the performance of Latin American carriers lagged, with a margin of 8.1%, from 10.7% earlier.
Other keys findings in the report:
Having trended downwards between late-2014 and late-2016, underlying industry-wide passenger yields are broadly unchanged from their level a year ago.
Global airline share prices rose by 1.7% in October, driven by gains for European and Asia-Pacific airlines. Airline shares have outperformed the broader market over the past year.
Oil prices rose through the US$60/barrel mark during October, the highest level since June 2015, amid signs that Opec-led production cuts could be extended until end-2018, raising tensions between Saudi Arabia and Iran.
Passenger and freight volumes both grew robustly in year-on-year terms in September, although the seasonally-adjusted upward trends in both series eased between second and third quarters.
The passenger load factor remains at an elevated level by historical standards, while the seasonally-adjusted freight load factor is currently at a level last seen in late-2014.
There is a widespread pick up in premium-class performance, as global trade conditions support premium passenger demand on some key Asian markets.
