SOURCE: IATA
Key points
• The latest Q4 financial results confirm that airlines continued to experience deep losses due to the ongoing impact of the pandemic. These losses were most significant in the Latin and North America region. The pressure on airlines' revenues will continue in the near-term. Although vaccine rollout has been encouraging, there are large differences across regions. Moreover, Europe is facing a new virus wave, which worsens prospects about the summer travel recovery.
• Airline share prices picked up across all regions in February, reflecting the vaccine optimism and hope for a resumption of summer travel. However, the upward trend was reversed in March as the concerns about virus spikes in Europe countered positive developments in the US.
• Because of growing optimism about growth in the wider economy, oil and jet fuel prices strengthened in March and hovered close to pre-pandemic levels for the second consecutive month. The higher fuel prices will add to the challenge of making the restart of air travel cash positive. … READ MORE