IATA releases airline Financial Health Monitor for Feb-2010

Airline share prices continue to outperform the market as investors favour this highly cyclical sector. Stronger airline financial performance emerging more clearly in 2009Q4 results, though Europe lagging. Ability to turn stronger demand into profit hampered by rising trend in jet fuel prices, now at US$85/b. Travel and freight demand turning up strongly at start of 2010 but very large geographical differences. Capacity starting to return but at a very cautious rate, so load factors reached record levels in January. Tighter supply-demand conditions raising fares and cargo rates but both still far below early 2008 levels. Deliveries continue to expand the fleet - resulting low asset utilization also hampering return to profitability.