• Global airline share prices performed strongly in May, surging 7.8% to be up more than 20% over the past year. Gains were observed in all 3 regions, but European airline shares led the way again this month, with a 14.3% rise.
  • The latest financial results for Q1 provide further evidence of the squeeze on airline profit margins, reflecting higher costs and weak yields. Industry-wide free cash flow also eased in Q1, compared with the outcome in Q1 2016.
  • The fall in Brent crude prices in April extended into May and despite some recovery, the monthly average price fell almost 4%. Jet fuel prices behaved in a similar fashion and were down 5.6% for the month overall.
  • The strong start to the year for passenger and freight demand growth has continued. The passenger load factor set a new record high in April while freight loads consolidated recent gains.
  • Growth in premium passenger traffic has exceeded its economy counterpart in many key markets in the past year.
  • Passenger yields remain 3-5% lower than a year ago amidst ongoing signs that the downward trend in yields of the past three years may have bottomed.