Airline profits have doubled in the second quarter of 2015 to $8.9 billion, with Asia Pacific and North America seeing increases but Latin America is struggling, according to the International Air Transport Association (IATA) Airlines Financial Monitor report for September 2015.
The association says North American and Asia Pacific airlines were helped by lower fuel prices compared to the same period of 2014 while Asian carriers have also cut costs. Latin American carriers have struggled with falling yields and an economic recession in Brazil.
IATA says: “The financial performance of the airline industry has been mostly solid up to the middle of the year, with Q2 results showing large profit improvements in the US and Asia Pacific, but down in Latin America.”
IATA sampled 82 airlines around the world in the report, including Aer Lingus, Air New Zealand (pictured), Cathay Pacific Airways, Juneyao Airlines and Qantas Airways.
The report says North American carriers saw net post-tax profit rise from $4 billion in the second quarter of 2014 to $5.9 billion in the same period of 2015. Asia Pacific carriers made a profit of $2.2 billion in the second quarter compared to a loss of $439 million during the same period of last year.
European airlines saw an improvement from $859 million in 2014 to $901 million this year. Latin America saw losses increase to $105 million compared to $57 million in 2014. Other airlines saw profits remain at $7 million.
IATA notes that carriers have been boosted by lower crude oil prices, which have averaged $57 a barrel so far this year.
The association explains oil prices have fallen below $50 a barrel because of increased supply in Iran and the US while demand weakened in economies including China.
