Further signs passenger 'yields have bottomed out'

THE downward trend in passenger yields across the airline industry has bottomed out, the International Air Transport Association (Iata) said in its latest financial monitor.

"This development reflects a pick-up in global economic activity, as well as upward pressure on some key input costs, including labour costs in a number of countries," said Iata. However, it pointed out that there is no sign of an upward trend just yet, given that yields are 4.5 per cent lower year on year.

"Signs that yields have bottomed out are consistent with an easing in the upward pressure on the breakeven load factor seen during 2016," Iata noted in its report. "With achieved passenger loads remaining close to all-time high levels, this is underpinning investors' confidence about airline financial performance over the year ahead."