Asian airlines feel drag from weak cargo market

SHARE values of Asian carriers registered a 2 per cent drop in March compared to February, as the region's airlines continued to struggle with a weak cargo market.

Globally, airline shares were flat in March, in line with the broader market, according to the International Air Transport Association's (Iata's) latest financial monitor. However, American carriers bucked the trend with their shares edging up 4 per cent on the back of a stronger financial performance.

On the financial front, Q4 results indicate that airlines are continuing to improve financial performance at the operating level. A sample of 16 North American carriers showed they closed Q4 2013 with a net profit of US$1.59 billion, versus a loss of US$289 million in Q4 2012. In contrast however, a sample of 18 Asia-Pacific carriers reported a net profit of US$204 million in Q4 2013, down from US$1.5 billion in the corresponding quarter a year earlier.