New Delhi: As 55 world airlines posted a combined loss of USD 1.5 billion, overall global profits in the first quarter of 2012 fell significantly, with European carriers suffering maximum net losses followed by those in the Asia-Pacific region, latest IATA data showed Wednesday.
The share value of Asia-Pacific carriers remained flat in June compared to May, even though it increased for the European carriers which performed worse than the former, the International Air Transport Association said in its Financial Monitor for June and the first quarter of 2012.
The most-profitable airlines were in North America, followed by those in Latin America and the Middle East.
While the post-tax net loss for European airlines was estimated at USD 1710 million that of Asia-Pacific airlines stood at USD 231 million the figures showed.
"Q1 airline profit fell significantly compared to a year ago. Although the industry struggled, with 55 airlines indicating a combined net loss of USD 1.5 billion, North American airlines performed strongly," the IATA report said.
While North American airlines maintained high load factors through the year and managed to significantly improve profits than a year ago, "European airlines, conversely, are experiencing even larger losses than in Q1 2011," it said.
Though airline share prices improved slightly in June compared to May, increasing only one percent, share value of those in Asia "was flat over the month". Even in Europe, airline shares actually improved by five percent.
The IATA, however, said that market conditions during the second quarter have been supportive for airline profits, with oil prices falling further in June. Air travel continued to expand through the second quarter, though there were signs of softness in May traffic, it said.
IATA's May air traffic results have already shown that Indian domestic traffic recorded a meagre year-on-year rise of 0.1 percent, indicating a slowing demand.
First Published: Wednesday, July 4, 2012, 18:41