Jet fuel prices have breached the highest level since November 2014 and are currently sitting just above $90 per barrel, IATA said in its latest financial monitor.
The current jet fuel price is nearly 55% higher than it was a year ago, IATA said on Thursday.
“Global oil prices have trended upwards since early 2017, driven by a combination of a gradual reduction in oil inventories amid robust demand and tighter supply conditions, as well as geopolitical developments,” IATA said.
The International Air Transport Association said oil futures curve has shifted up in recent months, but it is still consistent with a moderate decline in oil prices over the coming years.
Industry-wide revenue passenger kilometres (RPKs) grew by 6.1% year-on-year in May 2018 — up very slightly from 6.0% in April. RPKs fell by 0.5% in SA terms relative to April, which was the largest fall on this basis since November 2015.
“However, the bigger picture is that the upward trend in seasonally adjusted (SA) traffic remains robust coming into the peak period for demand during the summer,” the industry monitor said.
Year-on-year growth in industry-wide freight tonne kilometres (FTKs) slowed to 4.2% in May, from 5.2% in April. That said, SA FTKs increased in SA terms for the second month in a row, and FTKs are now broadly back in line with where they would have been had the moderate upward trend in late-2017 been sustained, IATA report showed.
Premium-class passengers accounted for 5.4% of total international origin-destination traffic in the first four months of 2018 — unchanged from the share seen in the same period of 2017.
The report said premium passenger growth has continued to lag behind its economy counterpart on the two-largest premium markets in terms of revenue — the North Atlantic and Europe-Asia — albeit modestly.
The underperformance has been more marked on routes to/from South America, as well as between Europe and the Middle East, it said.
“However, this has been offset in part by stronger showings for premium-class demand to, from and within Asia, and within Europe,” IATA said.
In terms of passenger and freight capacity, the report showed Industry-wide available seat kilometers (ASKs) grew by 5.9% year-on-year in May. This was the 18th time in 19 months in which annual passenger capacity growth has lagged behind that of demand.
The bigger picture is that passenger capacity and demand are currently trending upwards at a broadly similar pace.
Meanwhile, available freight tonne kilometres (AFTKs) rose by 6.2% year-on-year in May 2018, broadly unchanged from 6.1% in the previous month. While FTKs have risen in the past two months, freight capacity has continued to trend upwards at a slightly faster annualised pace than demand, IATA said.