IATA Airlines Financial Monitor July – August 2021

Source: IATA

Key points:

• Initial Q2 2021 results show that net losses of airlines at the aggregated level diminished compared with Q1 2021. In particular, North American airlines’ financials showed a significant improvement amidst the rebound in U.S. domestic travel. Although the financial performance of the airline industry at the aggregated level improved considerably, new COVID-19 restrictions in some large domestic markets that are on the recovery track together with tight international travel restrictions pose downside risks to the recovery.
• Global airline share price index increased in August following the FDA approval of COVID-19 vaccines in the United States. However, the year-to-date performance of global airline stock index is still lagging wider global equity markets.
• Brent crude oil and jet fuel prices ticked down in August amidst concerns that new Delta outbreaks and the resulting restrictions will hit oil demand and slow global economic recovery.