Reading Time: < 1 minute Rising fuel prices and issues with global trade are greatly weakening the business environment for airlines, IATA announced. According to forecast, “in 2019 overall costs are expected to grow by 7.4%, outpacing a 6.5% rise in revenues. As a result, net margins are expected to be squeezed to 3.2% (from 3.7% in 2018)”. “Margins are […]

Reading Time: 2 minutes Investors will be keeping a keen eye on how airlines approach the dual problems of rising fuel costs and labor costs this year. Last December the International Air Transport Association (IATA) highlighted these two elements, which are airlines’ highest expenditures, as the major challenge for 2018. In 2016, labor costs accounted for 22% of airlines’ […]

Reading Time: < 1 minute Air China and China Southern Airlines were impacted by higher fuel prices in the 2017 first half as the two carriers reported year-over-year (YOY) six-month net profit decreases of 3.8% and 11.6%, respectively, to CNY3.3 billion ($486 million) and CNY2.8 billion. Beijing-based Air China’s 1H operating revenue rose 8.7% YOY to CNY58.2 billion while operating […]

Reading Time: 2 minutes Delta Air Lines earned a net profit of $4.53 billion in 2015, a nearly $3.9 billion improvement from $659 million in net income in 2014. Delta CEO Richard Anderson told analysts and reporters that capacity discipline remains a key to the airline’s consistent financial success. The carrier grew total system capacity 3% year-over-year in 2015 […]